The invention discloses a processing system for generating power by burning refuse on the water surface of a hydropower station. The processing system comprises a refuse stacking bin, a cutting system, a mixing-stirring machine, a compressor, a drying chamber, a granulator, a fuel bin, a combustion chamber, a combustion improver stock bin, a binding material stock bin, a boiler and a steam turbine, wherein smoke is exhausted through a chimney, and an ash bin is arranged under the combustion chamber and is sequentially connected with a sieving machine, a crushing machine, a melting pool, a metal adsorbing-recycling pool, a filter net, an evaporation chamber, calcining chamber, a natural cooling bin, a grinding machine, a water tank and a mineral powder bin. According to the processing system, the refuse is converted into a new fuel and is fed into the combustion chamber in a certain feeding speed, the steam is generated by the boiler by virtue of heat generated after the combustion of the fuel, and the steam turbine is driven to generate the power by virtue of the steam, so that the considerable energy source is obtained; the combusted ash can be converted into a cement additive with high utilization, economic and social values by virtue of reasonable processes and equipment.