Atmospheric pollution is increasingly serious in China, and coal-fired power plant is an important reason for it; therefore, it is very crucial to adjust energy structure and industry structure for the regional eco-civilization and sustainable development. Taking Baicheng city in western Jilin as an example, by the method of quantitative and qualitative analysis, firstly, this paper analyzes the significance and conditions of the development of circular economy of thermal power. Furthermore, the thermal power cycle economic model which is built for promoting and upgrading the regional industrial structure, and strengthening healthy development of social economy and environment. It is suggested to build a virtual eco-industry park, taking Baicheng power generation co. as the core, including internal clean production of the coal-fired power plant, and linking the coal-fired power plants with agriculture, industrial, tourism and recycling industry. Keywords: Coal-fired power plant, Circular economy, Build, Western Jilin