in order to cope with the continuous aggravation of environmental pollution and the growing shortage of fossil fuels, promote the implementation of the "double carbon" goal and build a modern energy supply system, the proportion of wind power, photovoltaic and other renewable energy in the system is increasing, which has brought challenges to the construction of new power systems. However, renewable energy power generation is intermittent and volatile, and the access location is scattered, which increases the difficulty of safe and stable operation of the power system. The proposal of virtual power plant provides a new idea for solving the problems of renewable energy, ensuring energy security and maintaining power system stability. This paper describes the basic structure of virtual power plant, and analyzes the key technologies of virtual power plant from three aspects: market operation technology, coordinated and optimized operation technology, Internet of things technology. It also introduces the transaction structure of the virtual power plant market from the perspective of platform level and multi flow integration, and analyzes the multi-level market modes of virtual power plants" participation in auxiliary services, medium and long-term, spot and so on, so as to provide reference for the construction and development of China"s virtual power plants" participation in the power market.