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This paper addresses the problem of a multiyear security constrained hybrid generation-transmission expansion planning. It is assumed that the overall generation requirements of a network are known along the planning horizon, but their allocations are unknown. Moreover the fuel cost throughout the network is not uniform. By allocating the overall generation capacity among the grid nodes, and determining the new transmission element additions along the planning horizon, the overall cost of the system is minimized. The problem is formulated as a mixed integer nonlinear programming problem, which for a large-scale system is very difficult to solve. In this paper a new constructive heuristic approach is proposed, so that the problem can be readily solved. To assess the capabilities of the proposed approach, two networks are studied: the Garver test grid as a small grid and the Iranian power grid as a large-scale grid.Index Terms-Fuel supply cost, generation-transmission expansion planning, mixed integer nonlinear programming.

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