Abstract: The opening of the retail market is one of the key tasks of the power system reform in China. In this paper, under retail power market deregulation, we consider the influence on demand-side resource participating in electric market, propose a bidding strategy of virtual power plant considering demand response, and set up a bidding model for the whole market including virtual power plant （VPP）. On the basis of the optimization of the virtual power plant, we use the adaptive learning method to solve the model, and clear the market with the goal of maximizing the social benefit. Finally, an example is selected to verify the validity of the bidding strategy, and the results show that the economy of the generation companies and retailing suppliers is improved and the demand for electricity in the whole market is adjusted. What's more, retail power market deregulation is benefit to demand-side resources participating in market competition.

Key words: virtual power plant （VPP）, retail power market deregulation, demand response, market bidding