China Energy News: Can coal also have a "capacity compensation mechanism"?

The China Energy News article stated that the establishment of a coal "capacity compensation mechanism" should take into account both scientificity and operability. It can draw lessons from China's successful coal-electricity capacity pricing mechanism, based on the characteristics of the coal industry's capacity reserves for optimization. In terms of compensation standards, it should be classified according to factors such as the scale of coal mine reserve capacity, maintenance costs, and supply maintenance contributions to avoid a "one-size-fits-all" approach, focusing on enterprises that undertake emergency supply tasks and have high maintenance costs. In terms of compensation funds, funds can be raised through market channels, combined with government guidance and market participation, to form a stable source of compensation funds. In terms of assessment and supervision mechanisms, strict assessments should be carried out on enterprises' reserve capacity maintenance and emergency response to ensure accurate allocation of compensation funds and effective results. In addition, ideas such as capacity rights trading and financialization of costs can be borrowed to diversify compensation methods, allowing enterprises to receive diversified returns while fulfilling their supply responsibility, further stimulating corporate enthusiasm. Currently, China's energy transformation has entered a critical stage, not only promoting the high-quality development of new energy but also retaining the coal supply bottom line to deal with various uncertainties with the certainty of coal supply. Establishing a scientifically reasonable coal "capacity compensation mechanism" can not only stimulate corporate participation in reserve capacity construction and further strengthen the national energy security barrier, but also help to establish and break through, promote the coordinated development of coal and new energy, and provide solid guarantee for the high-quality development of China's energy. Its importance is self-evident. Especially as coal consumption approaches its peak, this issue is particularly worthy of our high attention and careful planning.