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Modern transmission network expansion planning (TNEP) is carried out with AC network model, which is able to handle voltage and voltage stability constraints. However, such a model requires optimization with iterative AC power flow model, which is computationally so demanding that most of the researchers have ignored the vital (N-1) security constraints. Therefore, the objective of this research work is to develop an efficient, two stage optimization strategy for solving this problem. In the first stage, a DC expansion planning problem is solved which provides an initial guess as well as some very good heuristics to reduce the number of power flow solutions for the second stage of AC transmission and reactive expansion planning. A modified artificial bee colony (MABC) algorithm is used to solve the resulting optimization problem. Static AC TNEP results for Garver 6 bus, IEEE 24 bus and IEEE 118 bus test systems have been obtained with the proposed and rigorous approaches and wherever possible, compared with similar results reported in literature to demonstrate the benefits of the proposed method. Also, multi-stage dynamic AC TNEP for the Garver 6 bus system is solved to show the applicability of the methodology to such problems.

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