Abstract: Accessing flexibilities in energy demand side will pave the way for a higher integration of variable and intermittent renewable energy in power systems. Energy distribution network（EDN） is a novel concept of integrating flexibilities in demand side by interoperating diverse energies such as electricity, gas and heat within a local area. With highly flexible energy interoperations, EDN can actively respond to variable renewable energy leading to a higher renewable share in power systems. This paper systematically presented the concept of EDN with the discussions on its infrastructure and fundamentals on multi-energy coordination. Three types of operation modes of EDN were investigated as well as mode conversions and comparisons with typical smart grid applications. A surplus market of EDN was proposed in the paper aiming at trading large amounts of renewable energy surplus, which can be a positive attempt of China’s power market reformation. Finally, the outlook of potential breakthroughs was summarized in the paper.