The invention provides a power system generation side resource allocation optimization method, belonging to the field of optimizing power system generation side resource allocation. The method is first based on Nash-Cournot equilibrium model is established to construct the power system generation side resource allocation optimization model, which is composed of objective function and constraint conditions, considering the technical constraints of market participants and market clearing conditions; According to the technical constraints provided by different generators, the optimal allocation of power generation resources can be obtained. The invention is used for optimizing the resource allocation of the power generation side of the electric power system, improving the consumption of renewable energy and improving the operation efficiency of the electric power system.