As China's energy transition progresses

significant strides have been made in the development of renewable energy sources. However

the construction of a novel energy system imposes heightened demands on the adaptability and efficacy of the electricity market under the integration of renewable energy. This paper begins by analyzing the surface-level impacts of variable energy resources on the electricity market

identifying critical shortcomings in the current market mechanism

such as challenges in cost recovery and inadequate price incentives. It then explores incremental adjustments to existing mechanisms

discussing the responses of domestic and international electricity markets to the challenges posed by renewable energy integration. These responses include the extension of pricing mechanisms

the design of novel auxiliary service products

and the refinement of capacity markets

along with an assessment of their implementation outcomes. Furthermore

the paper explores more radical proposals

drawing on insights from industry and academia in developed regions

such as Europe (two market designs) and the United States (swing contracts). Finally

the paper reflects on the future trajectory of electricity market reform in China

considering the country's unique energy resource endowment and current market development

and offers recommendations for establishing a more flexible and low-carbon electricity market mechanism.