In CO2 capture retrofit unit of existing coal-fired power plants, energy level mismatch between extraction steam from turbines and CO2 regeneration process always results in large exergy destruction and low thermal efficiency. Thus, a new CO2 capture system driven by double absorption heat transformer is proposed. Through the absorption heat transformer, low-temperature steam is upgraded into a higher energy level to match the temperature of CO2 regeneration. Also, flue gas heat is partly recovered to preheat the circulating water from CO2 capture process to further decrease system energy penalty. Aspen Plus 11.0 is used to simulate the system and parameters of key processes are validated by experimental values. It is shown that with 90% CO2 capture, the thermal efficiency of the power plant with proposed CO2 capture system is enhanced by 1.25 percentage points compared with traditional method. And the efficiency enhancement of the proposed system has a trend of increase first and then decrease with CO2 capture rate growth. For a 350 MW coal-fired power plant, the optimum CO2 capture rate is 53.65% and the corresponding efficiency enhancement is 2.06 percentage points. Exergy analysis shows that the exergy destruction in CO2 separation and steam condensation process can decrease by 49.5% in the proposed system, and thereby the exergy efficiency is 1.85 percentage points higher than the conventional method. Furthermore, the cost of CO2 avoided and cost of electricity of the proposed system will be reduced by 10.7 $/t-CO2 and 1.9 $/MW h, respectively.