Abstract: There is lot of low temperature heat energy in circulating cooling water of power plants, and the heat pump has the ability to elevate energy from low grade to high grade. The feasibility of utilizing waste heat recovery by heat pump technology in power plant is analyzed. The comparison is made with the conventional heat supply such as the heat power plant, which proves that it has the double effects on energy saving and environmental protection. According to its application to the surrounding residential areas of the power plant for the winter heating and summer cooling, the techno economic analysis is carried out. Though the initial investment is higher, the operation cost is lower and all of the investment can be recovered within five years.