The present study aims to develop an accurate and fast improved blade element method (BEM) with two-way rotor-rotor interaction model which can account for two-way rotor-rotor interaction and the influence of rotor spacing while most previous BEM models for co-axis dual rotor wind turbines (DRWT) ignore the rear to front rotor interaction effect. A modified BEM model distinct from computationally intensive Computation Fluids Dynamics (CFD) model, is proposed for DRWTs. Validation of the present model is conducted by comparing it with experimental data from referenced literature for both co- and counter-rotating configuration. In our case study, for both co- and counter-rotating configurations, the power coefficient (CP) maps exhibit a double-hump shape instead of a single peak on the power output -λ curve observed in a single rotor wind turbine system. This characteristic may lead the DRWT to a local CPmax condition rather than the global CPmax while pursing the optimum operational condition. Although the counter-rotating DRWT can achieve a higher CPmax for most rotor spacing ratio (S/R) cases, it exhibits inferior power output than the single rotor for the S/R = 0.1 case. The present model can serve as a rapid and accurate model for configuring and control strategy evaluating DRWTs.