Abstract: With carbon trading and virtual generator units based demand response considered,apower system optimal dispatch model integrated with wind power is proposed against the background of smart grid and low-carbon electricity.Firstly,demand-side resources are divided into resources that are to be dispatched and those that are not.Virtual generator units of price-based demand response and incentive-based demand response are established and their operation characteristics are analyzed.Secondly,the carbon trading is introduced into the optimal dispatch model.The concept of CO2 emission mitigation target is presented and its restriction on carbon emission is analyzed.On this basis,a model considering cost of carbon trading,power generation cost of thermal power units and operating cost of virtual generator units is presented to formulate a novel lowcarbon economical dispatch that takes into account constraints on power balance,units output and climbing rate,operation constraints of virtual generator units,and so on.Finally,the bacterial colony chemotaxis（BCC）algorithm is applied to solving this model.Wind power accommodating and the comprehensive operation costs of the system in different scenarios are analyzed through simulation examples.The feasibility and effectiveness of the proposed model and algorithm are verified by the results of numerical examples.