A novel power generation system based on coal partial gasification has been proposed of which the coal feed rate is 50kg/s. It is mainly composed of oxygen‐blown CFB gasifier, CFB char combustor, heat recovery boiler and power generation unit. Coal is partly gasified with oxygen and steam to produce syngas and the syngas is sent to GT for power generation. The residue char is combusted in char combustor for power generation. Supercritical power generation technology is adopted in ST power generation unit and the parameter of the main steam is 560°C, 22.4MPa. Techno‐economic analysis of Partial Gasification Combined Cycle (PGCC) system is conducted and compared with IGCC. Law of conservation of energy and production capacity index method are adopted for thermodynamic and economic analysis, respectively. Efficiency of power generation, internal rate of return, and payback period are obtained by detailed calculation. The simulation results show that the efficiency of power generation of APGCC and PPGCC system are 49.44% and 51.37%, respectively, which are higher than that of IGCC. The fixed capital investment of PGCC is much lower than that of IGCC. The internal rate of return and payback period of APGCC 13.38% and 7.24 years, respectively which are ~9% higher and 8 years shorter than that of IGCC, respectively. This article provides a detailed analysis of PGCC which indicates that the PGCC technology has a promising prospect.