The numerical analysis of energy and material balance, and plant performance has been carried out when applying the heavy residual oil instead of heavy oil to the existing heavy oil power station. The performance analysis model has been constructed for A heavy oil power station in Korea, and the modeling results were compared with the design data in order to ensure the validity of the model, and further compared with the plant operation data. With the heavy residual oil, the simulation gave 315 MW in power output, which is higher than that of the heavy oil combustion, but the plant efficiency turned out to be lower. The sensitivity analysis of heat rate for the changes in cooling water and ambient temperature, flue gas recirculation and power output has provided valuable information for the optimal operation of the power station.