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This paper focuses on the introduction of a fast and high precision harmonic analysis algorithm used for power energy measurement. The derivation process of a novel approach to harmonic analysis for industrial power systems based on windowed fast Fourier transform is presented. And the formulas of the concerned harmonic parameters, i.e., frequency, phase, and amplitude, are given also, which is free of calculating high-order equations. The proposed algorithm has the major characters that the accuracy is comparable to the currently used polynomial fitting interpolation algorithm, but the calculation speed is improved by more than 10% and can be easily implemented by hardware multipliers, making the method a good choice for real-time applications. The simulation results and application in the embedded computer STM32F407 based three-phase harmonic power energy meter validated the practicability and efficiency of the proposed algorithm.