Abstract: Hydropower is a green and clean renewable energy source with zero pollution and low operational costs, which serves as a crucial adjustable energy source in the new power system.Leading hydropower stations located upstream in a basin, with strong regulation and storage capabilities and cascade compensation benefits, ensures stable grid operation and embodies the capacity value of adjustable hydropower in a power system.However, due to its high investment and high costs, it requires a relatively high electricity price level.Based on the inflow data of three typical years in a basin in Sichuan Province, the total power generation of the entire cascade was calculated.The results show that after the completion of the leading hydropower station, the average annual increase in power generation of the entire cascade reaches 4.247 billion kWh, with an equivalent annual increase in power generation revenue of 1.289 8 billion yuan.Under a condition of a 40-year operational period and an internal rate of return (IRR) of 6.5%, the operational period electricity price of the leading hydropower station is 0.513 5 yuan/kWh.Using the operational period pricing method, operational period differential pricing method, and comprehensive electricity price reverse calculation method, the capacity compensation prices of the leading hydropower station were estimated to be 1 613.9 yuan/kW, 788.03 yuan/kW, and 955.89 yuan/kW, respectively.Additionally, the capacity cost allocation was analyzed, and the feasibility of the three schemes was evaluated.This approach ensures the rational sharing of hydropower costs while providing green, economical, and high-quality electricity for economic and social development.