Power demand response is a crucial means of regulating power supply and demand. Firstly, the national and local electricity demand response policies of domestic are summarized. It is clear that power demand response will achieve demand side resource coordination and optimization in a more effective way in the market. Secondly, the implementation rules of peak electricity price and bidding incentive power demand response are specially analyzed. Then, the implementation of incentive power demand response is analyzed from the scope of implementation, operating mechanisms, supporting technologies, business models, funding sources, compensation standards, user types, practical reasons, and practical effects. Finally, it provides feasible suggestions to the problems in practice and reference for the regions where are about to conduct power demand response.