Pumped storage power stations play a positive role in peak load regulation, new energy consumption and the realization of the“double carbon”goal. In order to study the cost diversion of pumped storage power stations in the process of power market, firstly the historical evolution of the provisions of national policies on the price mechanism of pumped storage power stations are combed systematically, and the cost recovery methods of foreign pumped storage power stations are investigated. On the premise of understanding the existing policies and practices, combined with the construction process of China’s power market, it is divided into three stages：the initial stage, the transition stage, and the mature stage. According to the construction situation of each market in different stages, the price mechanism of pumped storage power stations in different market stages is clearly given, and the analytical mathematical model of electricity price is established to effectively guide the costs incurred by pumped storage power stations. Considering economic development, price level, affordability and other factors, three principles for cost diversion of pumped storage power stations are determined, and six single and combined modes of cost allocation are proposed,which has certain theoretical and practical significance for the development of pumped storage power stations in China.