Abstract: Aiming at the high carbon emission of traditional coal-fired units, coal-biomass co-firing carbon capture technology was applied to retrofit coal-fired thermal power units for low-carbon conversion, and achieve deep carbon reduction for the source side. A model was established for coal-biomass co-firing carbon capture thermal power units. Meanwhile, to fully tap the carbon reduction potential of demand side, a demand response strategy based on a lowcarbon incentive mechanism was proposed. On this basis, an optimized scheduling model for a virtual power plant considering coal-biomass co-firing carbon capture and the lowcarbon incentive mechanism was constructed. Finally, aiming to minimize the total operating cost of the virtual power plant, simulation comparisons under five different scenarios were conducted. Results show that the proposed optimized scheduling scheme for the virtual power plant can achieve coordinated source-demand carbon reduction, effectively promote the integration of renewable energy, and reduce the total operating cost of the virtual power plant.