The definitions of the virtual power plant（VPP）in different literature are given first after analyzing the background of the emergence of VPP，and the nuclear concept of VPP is distilled.Accordingly，a comparison between VPP and microgrid is made with reference to relevant researches.The key technical know-how of VPP are discussed systematically，which includes coordinated control，smart metering and information and communication skills.Depending on the differences in functions，VPP is then divided into two major modules，the commercial VPP（CVPP）and the technical VPP（TVPP），based on which the operating structure of VPP is elaborated.Then，with the status quo of Chinas power systems taken into account，the developing potentials and suggestions for further advances of VPP in China are discussed.Finally，some future research directions are envisaged.