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This paper presents a method for coordinated network expansion planning (CNEP) in which the difference between the total cost and the flexibility benefit is minimized. In the proposed method, the generation expansion planning (GEP) of wind farms is coordinated with the transmission expansion planning (TEP) problem by using energy storage systems (ESSs) to improve network flexibility. To consider the impact of the reactive power in the CNEP problem, the AC power flow model is used. The CNEP constraints include the AC power flow equations, planning constraints of the different equipment, and the system operating limits. Therefore, this model imposes hard nonlinearity onto the problem, which is linearized by the use of first-order Taylor’s series and the big-M method as well as the linearization of the circular plane. The uncertainty of loads, the energy price, and the wind farm generation are modeled by scenario-based stochastic programming (SBSP). To determine the effectiveness of the proposed solution approach, it is tested on the IEEE 6-bus and 24-bus test systems using GAMS software.

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