This paper analyzes the impacts of the low-carbon policy in the power sector of Guangdong Province in China on its energy and carbon emission targets by 2020, as well as their costs and co-benefits, using a regional CGE model with seven scenarios: business as usual (BaU), renewable energy (RE), renewable energy and natural gas (RE-NG), CAP only (CAP), CAP and RE-NG (CAP-RE-NG), carbon emission trading (ETS), and ETS with RE-NG (ETS-RE-NG). Analysis results reveal that provincial energy and carbon intensity targets can be achieved in the assumed carbon mitigation scenarios with carbon cap, ETS, and clean energy development policies. While the carbon constraint exerts negative impacts on the economy, GDP loss could be lowered by the ETS and RE policies. The RE scenario is more economically efficient than the ETS scenario, and coupling the RE and ETS scenarios appears to be the most economically efficient scenario to achieve the desired carbon and energy intensity targets. One of the benefits of the low-carbon policy is its improvement of the energy security of Guangdong in terms of reduced reliance on external coal and oil; in particular, Guangdong coal consumption could peak in 2017-2019. (C) 2015 Elsevier Ltd. All rights reserved.