After a decade of rapid development, renewable energy has become one of the important energy supply forms in China. Under the new round electricity system reform in China, establishing a strategic price subsidy mechanism and market trading mechanisms for renewable energy is a key solution to accommodating and developing the renewable energy. Compared with the market mechanisms of renewable energy in other countries, the research of renewable energy trading in electricity market is far away from mature in China. The current situation of the mechanism and price policies of renewable energy in China is outlined and analyzed in this paper. The mechanism of renewable energy participating the electricity markets in foreign countries are summarized and analyzed. The state-of-art researches on how to trade the renewable energy in the electricity markets are reviewed. Finally, the paper prospects the potential research fields of renewable energy trading in the electricity market and discusses its future development in China.