The establishment of distribution market needs to rely on the friendly interaction between various resources and power grid in the distribution network. Hence their demand for guidance by a scientific incentive mechanism. To this end

a mode is proposed for encouraging distribution side users interacting with the grid. According to the principle of incentive compatibility

a reasonable and effective price mechanism is suggested to clarify the contribution of flexible users to capacity saving. Relying on the transmission day-ahead market

the participation of users in distribution day-ahead interaction is designed including architecture

process and settlement. Based on the idea of decentralized decision-making

the interactive model of users' self-response and multi-round game of distribution network is simulated. The numerical example shows that

with the proposed mechanism

the costs and benefits arising from interaction can be fairly shared to deeply inspire user interaction with the distribution system

promote effective assets utilization of the grid

and achieve cooperation and mutual benefit as a win-win situation between distribution network and microgrids.