Abstract: At present, the penetration rate of renewable energy in China is constantly increasing, and in order to improve the regulation and control capabilities of power system, peak and frequency regulation resources are urgently needed. Virtual power plant (VPP) effectively controls internal distributed energy resources (DER), which can be used as an emerging peak and frequency regulation resource. With the launch of VPP projects, China needs to establish a complete VPP market mechanism. Therefore, this paper comparatively analyzed the construction of the market mechanism for VPP participating in peak regulation and frequency regulation in different provinces and cities from transaction type, market access, quotation clearing, and settlement, which could not only provide suggestions for the above provinces and cities, but also offer experience for other provinces and cities. Then, California, Australia and Germany with different construction ideas were selected to introduce the market mechanism for VPP participating in peak regulation and frequency regulation in terms of market composition, market access, quotation settlement and implementation. Finally, combined with China's national conditions, this paper put forward relevant suggestions for the construction of the market mechanism.