Virtual power plant (VPP) is an innovative business mode and provides new technical means for integrating andmanaging distributed energy in power market. At present, The research on VPP mainly concentrates on its operation and optimal dispatch, lacking of research on market mechanism and compefition strategy, and thus the potential of VPP’s commercial value isunderestimated. By centering on the business mechanism and operating mode of VPP considering demand response, the recent researches on participating ways, market organization and structure,bidding strategies, as well as game theoretical market models are introduced. Finally, the commercial valuation of demand response in VPP operation and prospective of its development are conclud?ed. This research can provide reference value for the real operation of VPP in future deregulated market environment in China.