The application of the energy-efficient thermal and energy management mechanism in Geothermal Heat Pumps (GHPs) is indispensable to reduce the overall energy consumption and carbon emission across the building sector. Besides, in the Virtual Power Plant (VPP) system, the demand response of clustered GHP systems can improve the operating flexibility of the power grid. This paper presents an integration and operation framework of GHPs in the distribution network, applying a layered communication and optimization method to coordinate multiple clustered GHPs in a community. In the proposed hierarchical operation scheme, the operator of regional GHPs collects the thermal zone information and the disturbance prediction of buildings in a short time granularity, predicts the energy demand, and transmits the information to an aggregator. Using a novel linearized optimal power flow model, the aggregator coordinates and aggregates load resources of GHP systems in the distribution network. In this way, GHP systems with thermal and energy management mechanisms can be applied to achieve the demand response in the VPP and offer more energy flexibility to the community.