In the context of south china electricity market, the concept of contract transfer and replacement deal is set forth in advance which is specialized in electricity treatment. Then, the feasibility of conducting an inter-provincial contract transfer and replacement is analyzed according to the aspects of physical characteristics, economics and policies within the china southern power grid. In addition, the advantage and disadvantage are also presented in terms of bilateral negotiation and centralized biding transaction modes. After that, the pricing mechanism and transaction mode are deliberately designed pertaining to three different situations including a party power shortage and a party "abandon water", a party power supply shortage and a party power surplus and a party power surplus and a party "abandon water". Finally, the realistic feasibility of the proposed schemes is verified through an employed numerical example.
