1.Energy Development Research Institute, China Southern Power Grid Company Limited, Guangzhou 510080, China;2.School of Electrical Engineering, Xi’an Jiaotong University, Xi’an 710049, China

With the maturity of renewable energy generation technology and the reduction of installation and operation costs, the distributed generation have been rapidly developed, and a large number of electricity prosumers have been generated. However, due to the characteristics of small capacity, high volatility and scattered distribution, the distributed generation is not suitable for participating in the existing electricity market. Combined with the research of foreign electricity retail market and the current distributed generation trading situation in China, this paper proposes a decentralized electricity market (DEM) mode at the level of distribution network. The framework design of DEM is carried out from the aspects of market definition, participants, trading methods, time scale and clearing methods. Aiming at the problem that the DEM trading platform is difficult to establish, this paper studies the feasibility and transaction realization process of blockchain technology applied in DEM. Finally, from the perspectives of policies, regulations and key points of market construction, the issues to be paid attention to in the construction of DEM are analyzed.