Abstract: Separating power generation industry from the vertical integration structure and introducing competition is the basis for electrical transmission and distribution reform,and also the premise for establishing a competitive wholesale electricity market and the interaction between the supply side and the demand side. China's power generation industry has formed a competitive pattern, with state-owned enterprises,private enterprises and foreign-funded enterprises coexisting. After calculating the TFP of the micro power generation enterprises,this paper analyzed the impact of competitive reform through empirical tests, and found that compared with the property reform,competition policy effectively enhanced the TFP of power generation industry. Furthermore,resource allocation of power generation industry was analyzed by kernel density map, BHC and GR decomposition methods. The results show that the resource allocation of power generation industry is optimized with time,but the entry effect is quite low in the resource allocation process,which indicates that the "glass door" still exists when non-state-owned capital enters the power generation industry. Therefore,it is necessary to continue to deepen the structural reform of investment, strengthen the competition of power generation market,and gradually promote the reform of electricity supply and distribution sectors.