Generation and Transmission Expansion Planning (GEP TEP) is of great importance in power systems. In conventional vertically power systems, investment in generation and transmission was done by the utility. In a restructured environment, generation and transmission owners present their preferred plans to Independent System Operator (ISO) and ISO chooses optimal plans. Increasing the penetration of renewable resources because of their uncertainty in generation can cause additional costs to system. In smart grid environment Demand Response (DR) resources can affect controllability of power systems ranging from short-term to long-term. In this thesis linear and nonlinear models for responsive loads are extracted. To model the behavior of different load sectors, three residential, commercial and industrial load sectors are considered. Generation expansion planning problem is decomposed to some smaller problems using Benders Decomposition (BD). This problem finds the optimal generation planning. Transmission expansion planning problem is solved using NSGA-II that is suitable for multi-objective problems. This problem finds optimal transmission plans and incentive to responsive loads. Keywords : Generation expansion planning, Transmission expansion planning, Renewable resources, Demand response programs
