The invention relates to the field of environmental protection energy, and especially relates to equipment and an industrialization method using municipal solid wastes to produce composite dry powder fuel for power generation of coal-fired power plants. According to compositions and physical and chemical properties of the municipal solid wastes, through the advanced technology of step-by-step sorting, drying at room temperature, modification composition and waste utilization, and equipments, the industrialization method include that: metals, silicate materials and plastics therein are sorted out through a sorting system; an ultrafine dry powder is produced by using room-temperature fine dewatering drying equipment; and additives are added for modification processing to produce the composite dry powder fuel for power generation of the coal-fired power plants; while the sorted and processed liquids, solids, and gases such as ferrous metals, non-ferrous metals, silicate materials (brick, stone, glass, sand, etc.), waste water, waste gases, and plastics are respectively processed using different processes and equipments. The equipment and the industrialization method not only can inexpensively and efficiently meet the requirements of quantitative reduction, stabilization, harmlessness, and resource utilization for wastes, but also realize the integrated utilization, making the wastes be a treasury bringing benefit to human continuously, and actually realizing a revolutionary breakthrough for municipal waste processing.