Abstract:The market operation model and trading mechanism should be coordinated development with the pilot projects of incremental distribution network. Different market roles lead to different ways of market participation. Firstly in the view of electricity retailers and combined with the different market background, the business model and transaction mechanism of purchasing and selling electricity of incremental distribution network with distributed generation are put forward. Then, in the view of load aggregators,considering the sensitivity of consumers to the real-time electricity price in the spot market, the transaction mechanism of participating in demand response for incremental distribution network as a consumer agent is put forward. Finally, aiming at the development status of incremental distribution network and the problems coming in the future integrated operation mode, the main technical difficulties are analyzed to provide references for the future research of incremental distribution network.