The world is being quietly rearranged by people who write very long documents.
NDRC · January 30, 2026
The title they went with关于完善发电侧容量电价机制的通知Noisy translates that to
China stops paying power plants to exist and starts paying them to perform
The world's largest power grid is just now discovering the concept of paying for performance.
What happened
China's energy regulator just changed how it pays power plants for being available during peak demand. Instead of fixed capacity payments based on what type of plant you are, plants now get paid based on how much power they can actually deliver when the grid needs it most — a shift that rewards reliability over installed size and creates new incentives for battery storage and flexible gas plants.
Why it matters
China is finally paying power plants for showing up to work, rather than just being on the payroll. By shifting capacity payments from installed size to peak reliability, the grid is suddenly putting a premium on flexibility. Battery storage just went from a science project to a utility-scale business model.
The signal
Provincial energy regulators must now calculate the actual peak capacity of every plant in their jurisdiction. Expect a wave of downgraded capacity ratings for older coal plants by the end of the year.
China has officially declared that coal plants will no longer receive capacity payments just for existing. Going forward, they will receive half of their fixed costs to guarantee they continue existing.