The power industry, as an important infrastructure for and an important part of China's national economy, is the largest fixed source of air pollution. With the rapid growth of the power industry, power plant emissions are threatening the sustainability of China's economy and environment. In China's current environmental regulatory system, environmental protection bureaus are the key agencies that execute environmental regulatory power; and local people's governments are responsible for the protection of environmental quality in their administrative areas. This type of regulatory system has some weaknesses; non-compliance and weak enforcement of the laws is common. China is facing a pressing need to improve its environmental regulatory system for the power industry and strengthen power industry pollution control. This thesis takes Jiangsu Province as an example. Through investigations and theoretical analysis using the principal-agent model, the thesis analyzes the institutional barriers to environmental regulation of the power industry in Jiangsu Province.