Abstract: With the rapid development of renewable energy and the new energy supply and demand situation in China, Chinese power market research is gradually moving from theory to policy design and implementation. Among the numerous advanced foreign power market construction experiences, based on the unique balance group mechanism design, the German power market effectively shares the balancing cost with the whole society. Meanwhile, the scale of the German real-time balancing market does not significantly expand simultaneously, enhancing the level of Germany's renewable energy consumption. This paper discusses the German power market design mechanism based on the balance group mechanism in detail. Three types of critical subjects in the operation of the German power system are analyzed under the balance group mechanism. The contractual relationship among participants in the German power market under the balance group mechanism is sequentially analyzed. The participation and supervision of the party responsible for balance under the German power spot market and real-time balancing market and the calculation and correction of the balancing energy costs are also analyzed. The balance group mechanism is unique in the German power market, which effectively enhances the balance stability of the German power system as a high proportion of renewable energy is gaining access. It is an essential reference to the design of Chinese power market and power balancing mechanism.