Wind, and consequently wind generated power are stochastic in nature. Therefore, wind energy is
generally used in combination with fuel-based power to maintain reliability. Obviously, designing a
reliable and efficient network of several power generation sources requires capacity planning. In this
paper, a probabilistic optimization model is proposed for this purpose. The stochastic model uses a
combination of recourse and chance-constrained approaches to assign optimal capacities to several
sources of power generation including wind. Demand and wind generated power are both assumed
stochastic and possibility of energy storage, importation and exportation are also considered in the
network.