With the continuous deepening of China‘s electricity market reform, the problem that units with different costs compete in the same plat has become increasingly prominent. In the transitional period of market reform without capacity market, it is urgent to design a reasonable and effective subsidy mechanism for high-cost units to ensure their survival. This paper first summarizes the common subsidy mechanisms in China, and then introduces the design of subsidy mechanism for high-cost unit participation in the market in Guangdong, Zhejiang and Yunnan provinces. Finally, comparing the advantages and disadvantages of the above three subsidy mechanisms, the design idea of participating in market competition for high-cost units is given.
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