In the context of climate change, China's power industry undertakes the important task of reducing emissions. Distributed energy has been an important reduction option for power industry. In this paper, based on the review of important literatures, important factors affecting renewable energy generation (such as cost, technical maturity) are analyzed. Combined with factors such as resource potential, economic development and environmental constraints, China renewable energy optimization model, CREOP, is constructed. The model predicts the potential of renewable energy generation in 2020; explores the development characteristics of various power generation technologies and their trends of unit investment cost. The results have a strong reference for long-term energy planning in China.