In this article, we focus on the development and scope of virtual power plants (VPPs) as a strategy to facilitate the integration of distributed energy resources (DERs) in the power system. Firstly, the concepts about VPPs and their scope and limitations are introduced. Secondly, smart management systems for the integration of DERs are considered and a scheme of DER management through a bottom-up strategy is proposed. Then, we analyze the coordination of VPPs with the system operators and their commercial integration in the electricity markets. Finally, the challenges that must be overcome to achieve the large-scale implementation of VPPs in the power system are identified and discussed.
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