Abstract: The implementation of China’s power demand response is affected by the policy and the degree of marketization, and the lack of mature incentive mechanism leads to insufficient incentives that affect the enthusiasm of the response, and the construction of demand response projects is facing many challenges. Therefore, establishing and improving the demand response incentive mechanism and digging more flexible and adjustable resources are important means to ensure the balance of the new power system. Firstly, based on the basic concepts of power demand response incentive methods, implementation necessity and feasibility, this paper investigates and analyzes the theoretical research results of power demand response at home and abroad from the perspectives of demand response potential evaluation methods, incentive methods, implementation strategies of market players and response effect evaluation. Secondly, it also analyzes the significance of the construction status of foreign power demand response projects, and summarizes the domestic power demand response policy orientation, implementation status and practical experience. Finally, after comprehensively considering the theoretical results and practical experience of the implementation of power demand response, relevant suggestions are put forward for the future power demand of China.