Building China Power Valley is a key measure to promote the transformation of Zhuzhou from a traditional heavy industrial city to a modern, innovative city. Innovation capabilities of China Power Valley were analyzed in four aspects-Independent research and development of enterprises, Commercialization of research findings, Collaborative innovation system of production, learning and research, and Innovation service support system. The main issues affecting the upgrading of innovation capabilities were summarized, and the key points for enhancing innovation capabilities of China Power Valley were further pointed out: Establishing an innovation system that integrates government, production, learning and research, creating an innovation cluster with the power industry as its core, building a scientific and sound innovation ecosystem as well as forming the cultural atmosphere that encourages innovation throughout the whole society.