Abstract There is no uniform performance test rule and standard calculation method for efficiency improvement of a system that utilizes waste heat from flue gas and it is mainly carried out through turbine parameters, without considering boiler system performance. Given the above problem, in this paper, the steam turbine, boiler and waste heat from the flue gas step-up utilization system are calculated by establishing a thermal model of ultra-supercritical secondary reheating 1000 MW unit. At the same time, unit design data and field performance test results are used for verification. Analysis comparing simulation outcomes with experimental data revealed that the discrepancies in the heat consumption rate per unit, the efficiency of the boiler, and the rate of coal consumption for power generation peaked at a marginal variance of 0.2%. The optimum operating parameters of the system for low-grade flue gas recovery in a cascading manner are obtained through variable operating condition calculations. The optimum value of high-pressure bypass feed-water flow rate is 52 kg/s at 970 MW operating condition. At the same time, the difference between high-pressure bypass effluent and high plus effluent temperatures should be controlled to be close to 0°C, and the optimal value of low-pressure bypass condensate flow rate is 53 kg/s. As the flow of flue gas in the bypass increases, the efficiency of heat exchange in the bypass economizer also increases, resulting in greater absorption of heat in the utilization apparatus for flue gas waste heat, leading to a more effective energy-saving outcome. However, it is necessary to regulate the temperature of both the primary and secondary air to levels that exceed the minimum requirements for the safe functioning of the coal mill.