In the transition period of power reform, feed-in tariffs are mainly implemented in a two-part tariff system. Among them, capacity tariffs are set by the government, and electricity tariffs are formed by market competition. The capacity tariff is mainly to ensure the recovery of "fixed costs" such as equipment depreciation; the power tariff is mainly the recovery of "variable costs" such as coal needed for power generation and the "profit" that needs to be earned. "Capacity Tariff The capacity tariff guarantees cost recovery and no loss of money. The capacity tariff guarantees profit.
Hopefully adopted