Abstract: In view of CEFR’s power generation matter, the heat transfer and the power generation capacity for three loops of CEFR were modeled and analyzed, and the correctness of models was verified with the experimental data under 40% rated power generation condition. Based on CEFR’s real situation, the improvements to optimize operation conditions were suggested and the results were validated with the turbine data from manufacturers. Combined with the heat transfer capacity model, the heat transfer and power generation capacity of CEFR at full power were simulated. The results show that the heat transfer system and power generation system fulfill the design requirements under the optimized operating conditions.