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Based on characteristics of district heating system, a new GPC (generalized predictive control) algorithm was presented that directly identified controllerpsilas parameters with two identifiers. The new method could adapt the system of great inertia, time-varying parameters and rather large delay. In addition, it could omit computation of inverse matrix and Diophantine equations, and thus could greatly reduce operation process and operation time. Finally, by the simulation research of heat-exchanging process, the influence of feedforward compensation is analyzed, and the validity of the new algorithm is proved.