Abstract: Fossil fuel-firing power plants dominate electric
power generation in Taiwan, which are also the major contributor to
Green House gases (GHG). CO2 is the most important greenhouse
gas that cause global warming. This paper penetrates the relationship
between carbon trading for GHG reduction and power generation
expansion planning (GEP) problem for the electrical utility. The
Particle Swarm Optimization (PSO) Algorithm is presented to deal
with the generation expansion planning strategy of the utility with
independent power providers (IPPs). The utility has to take both the
IPPs- participation and environment impact into account when a new
generation unit is considering expanded from view of supply side.