Abstract: The capacity mechanism is an important supplement to the development of the electricity spot market. The design of an efficient capacity compensation mechanism is an important measure to stabilize the operation of the spot market and the revenue of generator sets, and it promotes the adequacy of the power system. This paper first discusses the missing money problem in the spot market and the impact of the large-scale renewable energy on the spot market, and demonstrates the necessity of the capacity compensation mechanism. Then, the development status and recent effects of the main capacity compensation mechanisms（scarce electricity price, capacity subsidy and capacity market mechanism） are summarized. The implementation process, pricing method and key issues in the capacity subsidy mechanism design are discussed. The capacity market framework, market organization, key parameter design methods and related influencing factors are introduced. Finally, some suggestions are put forward for the development of capacity compensation mechanisms in China.