Integration of large-scale wind power is very challenging for cost-effective and secure operations of power systems. The development of bundled wind-thermal generation and transmission system is viewed as a promising means to cope with the challenges. This paper presents a method to optimize the planning of bundled wind-thermal generation and transmission system. A comprehensive optimization planning model is formulated by taking the unit generation cost as the objective function and using the compensating capacity of thermal generating units and the rated capacity of converter station as the constraints. The proposed model takes into account the fuel cost of thermal generating units, the capital costs and maintenance costs of wind turbine generators, thermal generating units, converter stations, transmission lines, and the losses of the system. The simulated annealing algorithm is used as the solver of the model. Case studies are conducted to demonstrate the effectiveness of this proposed method. (C) 2016 Elsevier Ltd. All rights reserved.