The objective of this study is to develop a wind farm placement and investment methodology based on a linear optimization procedure that is constrained by both the power system and wind resources. This problem assumes great significance for the success of the investment of renewable energy projects such as wind power. In this study, a mesoscale approach is adopted whereby the location of the wind farm is investigated in comparison to microscale approach where the location of each individual turbine is optimized. The study specifically focuses on the placement of a wind farm by economical optimization constrained by power system, wind resources, as well as techno-economics. To the best of our knowledge, linear optimization is introduced in this context for the first time at the level of mesoscale power system constrained by planning of windfarms.