The aim of the paper is to present a proposal and discuss an application of an open environment for modeling of a power plant unit. Such an environment is called the Virtual Power Plant (VPP) and is based on a model created in the Matlab/ Simulink environment. VPP provides a framework for incorporating a broad variety of models, ranging from simple system models that run in real-time to detailed models that will require off-line mode to execute. The paper presents the architecture of the VPP and briefly describes its main components. An approach to implementation, including necessary simplification, submodels encapsulation and integration are discussed and illustrated by schematics and equations. The paper includes a case study, where the 225 MW coal fired unit is modeled.