Abstract:In the past, relevant studies mainly focused on the economy of virtual power plant operation. It is inevitable to abandon wind and light in actual operation, which is not conducive to the consumption of new energy. At the same time, under the traditional transaction mode, the distribution network, as the main opera-tor, takes the dual roles of power grid dispatching and economic transaction management into account. However, virtual power plants are mostly independent operators, and transaction information belongs to important commercial privacy. The way of distribution network coordination is not in line with the reality of the market. Therefore, a distributed transaction model, which is solved by target cascade method is proposed. While promoting the consumption of new energy in virtual power plants, information transmission to improve safety is reduced. Firstly, based on the established differential price model, the centralized transaction model is established.The coupling variable constraints between distribution network operators and virtual power plant operators are introduced into the centralized transaction model by Lagrange decomposition method,the distributed transaction model is established, and the analysis target cascade method is used to solve it. Finally, an example is given to verify the effectiveness and practicability of the model.