Carbon capture and storage (CCS) techniques are considered as one of the promising approaches to reduce carbon dioxide (CO2) emissions from fossil fuel based power generation, which still accounts for a significant portion of greenhouse gas emissions in the world. CCS technology can be used to mitigate greenhouse gas emissions, with the additional advantage that it allows continuing use reliable and inexpensive fossil fuels. However, CCS retrofit entails major capital costs as well as a reduction of overall thermal efficiency and power output. Thus, it is essential for planning purposes to implement the minimal extent of CCS retrofit while meeting the specified carbon emission limits for the power sector. At the same time, it is necessary to plan for compensatory power generation capacity to offset energy losses resulting from CCS retrofit. In this paper, an algebraic targeting technique is presented for planning of grid-wide CCS retrofits in the power generation sector with compensatory power. The targeting technique is developed based on pinch analysis. In addition, the proposed methodologies are illustrated through case studies based on grid data in India and the Philippines. Sensitivity analysis is carried out to determine the suitable CCS technology and compensatory power source which satisfy emission limits. (C) 2013 The Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.