In order to reduce the CO2 emission from the coal-fired power plants, O-2/CO2 recycle combustion (Oxy-combustion) technique has been proposed through combining a conventional combustion process with a cryogenic air separation process. The technique is capable of enriching CO2 concentration and then allowing CO2 sequestration in an efficient and energy-saving way. Taking into account the CO2 taxation and CO2 sale, the paper evaluates the economic feasibility of Oxy-combustion plants retrofitted from two typical existing conventional coal-fired power plants (with capacities of 2 x 300 MW and 2 x 600 MW, respectively) with Chinese data. The cost of electricity (COE) and the CO2 avoidance cost (CAC) are also considered in the evaluation. The COE of the retrofitted Oxy-combustion plant is nearly the same as that of the corresponding conventional plant if the unit price of CO2 sale reaches 17-22 $/t (different cases). The CAC of the retrofitted 2 x 300 MW Oxy-combustion plant is 1-3 $/t bigger than that of the retrofitted 2 x 600 MW Oxy-combustion plant. Supercritical plants are more economical and appropriate for Oxy-combustion retrofit. The result indicates that Oxy-combustion technique is not only feasible for CO2 emission control based on existing power plants but is also cost-effective. (C) 2008 Elsevier Ltd. All rights reserved.