This paper jointly considers wind power investment and transmission reinforcement. The proposed model is a mathematical program with equilibrium constraints (MPEC) that seeks to identify the optimal wind projects to be developed and the required network reinforcements. Under the transmission/system operator perspective, this MPEC seeks to minimize consumer payments and is constrained by investment conditions and the equilibria of the market under different operating conditions. An array of subsidies is considered to promote independent wind power investment. An example and two case studies illustrate the characteristics of the proposed model.