ABSTRACT Oxy-fuel combustion technology offers a promising solution for achieving nearly zero carbon dioxide emissions from coal-fired units, presenting a viable path toward low-carbon dispatch. This study establishes a simulation model for the low-carbon operation of power systems, focusing on the integrated operation of an oxy-fuel combustion plant and electric hydrogen production. By incorporating oxygen generated from electric hydrogen production into the oxy-fuel combustion plant, the primary objective is to minimize system operation costs. Through simulation analysis and verification, a comparative scenario is constructed to evaluate performance. The simulation results indicate that the joint operation approach yields significant benefits. In comparison to separate operation, the joint operation strategy leads to a reduction of approximately 7.38% in total system costs, 18.79% in operating costs, and 23.56% in carbon emissions. This integrated approach not only achieves lower carbon emissions but also results in reduced overall system costs.