The scope of China's electricity market is primarily at the provincial level, and currently, inter?provincial electricity trading plays a role in balancing surplus and deficit. This province?centric market structure results in an insufficient and incomplete optimization process for electricity resource allocation, leading to the coexistence of underutilized low?cost power plants and operational high?cost ones within the regional scope. Firstly, with the goal of minimizing the overall power supply cost, all market participants within the region are centrally cleared. Secondly, a measurement model for inter?provincial barriers is constructed after the clearance based on the minimum total cost. Subsequently, utilizing the Pareto optimization principle, compensation is provided to affected entities to eliminate barriers. Finally, the mechanism includes the sharing of net market revenue. This approach not only facilitates power substitution but also ensures that all market participants are not adversely affected, thereby eliminating inter?provincial barriers' impact on resource optimization and promoting the rational distribution of electricity resources and cost reduction within the region.