Because Taiwan is an island nation, it is difficult to obtain energy from external power suppliers; therefore, advance planning and scheduling of power development is crucial. This study uses a multi-objective planning method to minimize the cost of power generation and reduce carbon dioxide emissions by decreasing the dual objective of building the power supply scheduling model and the target year. This is conducted according to simulations of future carbon emission reduction policies for the scheduling of power supply situations. The results show that nuclear units will be able to reduce the power generation electricity costs and carbon dioxide emissions effectively; renewable energy has excellent potential to reduce emissions, and the cost of solar power technology with high fossil fuel prices will gradually enhance its cost competitiveness. Gas, although the cleanest fossil fuel, cannot be underestimated for its carbon dioxide emissions. As fossil fuel prices increase, gas will gradually experience a reduction in carbon reduction benefits; integrated gasification combined cycle with carbon capture and storage technology will replace part of the oil and gas power generation, and in addition to the reduction of carbon dioxide and costs, will achieve the goal. (C) 2013 Elsevier Ltd. All rights reserved.