The invention discloses a regional power system annual production simulation operation method and system. The method comprises the following steps: dividing a regional power system into a plurality ofsubsystems according to a restricted connecting line; establishing an annual time sequence generation simulation operation model of the regional power system with the minimum of the sum of the totalpower generation cost of the system and renewable energy limit penalty as an objective function; decomposing the operation model into M time periods for parallel calculation; setting an overlap periodbetween adjacent time periods; adopting a non-solution automatic rollback solution in the time period; and combining the M time period results into an annual time sequence production simulation result. According to the regional power system annual production simulation operation method and system in the invention, the annual time sequence production simulation of the regional power system is decomposed into M time periods for operation simulation in parallel to speed up the time sequence operation simulation solution speed; the problem that the state of the tail of the last time period is notconnected with the state of the head of the next time period is solved by setting the overlap period. The non-solution automatic rollback mechanism is adopted for solution in the time period, which effectively avoids the unsolvable situation caused by the aftereffect of the rolling solution.