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Considerable efforts are made in order to reduce the power sector's carbon footprint. Paired with a realization that thermal power plants are likely to play a significant role during the transitional period towards a 100% sustainable energy system, carbon capture and storage (CCS) retrofit is becoming a growingly important consideration for a number of power plant operators. This paper analyzes the possibility of retrofitting a coal-fired power plant based in Croatia. A techno-economic model of the proposed unit is built setting up key elements of the technological solution and determining their capital and operational costs. Both a sensitivity analysis and a market analysis are conducted in order to best evaluate the feasibility of the CCS retrofit project. Particularities of South East Europe power sectors are considered utilizing an optimization software. Special consideration is given to the influence of the EU emission trading scheme (ETS) on CCS projects. Further research focuses on the main factors influencing the potential implementation of CCS. Key recommendations that might aid CCS deployment are outlined signaling stronger government support, stable regulatory framework, and market incentives as crucial factors able to foster CCS development. Considering the project in the study, analyses showed that, although technically feasible, CCS retrofit is currently not a financially viable option. Without a stable regulatory framework able to guarantee an adequate supporting scheme, the project is not market competitive. It is important to note that the economic gap of CCS retrofit has been considerably reduced during the past years. [ABSTRACT FROM AUTHOR]