Abstract: The innovation of electricity industry in marketization is imperative since it provides power for the social and economic development of countries around the world. We comprehensively analyze the different innovation patterns of electricity industry in three representative developing countries i.e., Brazil, Argentina and India, and compare their current market mechanisms. We summarize the merits and experiences of these countries' electricity industry innovation. Based on this, the research suggests that China should improve the overall framework of legislation and institutional reformation, intensify retail-side competition, unit supervision and stage evaluation, and open channels for investment to promote independent innovation, which will improve efficiency of innovation of electricity industry in China.