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In market environment, the decisions of generation and network planning are made by separate economic entities, rather than one integrated utility. Because of the physical connection between generation and network, it is necessary to coordinate the two kinds of planning and solve the conflicts between the subjective individual game actions in economic and the objective law in physical. The current researches on the coordination between the two kinds of planning are reviewed and their shortages are indicated. The interactive influence between generation planning and network planning is discussed. Power trading is constrained by network congestions, and the competitive forces of the generators in congested areas are relatively lower. Constructing new lines and other relevant infrastructures can relieve congestions and reduce operation risks. Meanwhile, the competitive forces of the generators are affected differently. The newly-built generating capacity may enlarge the investor's market share and profitability. At the same time, it may influence the grid congestion situation and grid operation risks. The influences of the investors' planning to the economic efficiency of the power industry are also analyzed based on the hybrid simulation. On the basis of a discussion about the regulator's responsibilities in system planning, a preliminary regulation or coordination mechanism is suggested. After all the market entities submit their planning, regulator will issue audit opinions and modify the information on generalized congestions resulting from simulations. All investors can adjust their own decision under the guidance of the new constraints and submit their planning again. The tentative process would be iterated until satisfactory results are achieved. The experiments based on DSPMPS (Dynamic Simulation Platform for Power Market and Power System) analysis the interaction between the two kinds of planning and the influence of the two kinds of planning to the whole s- - ystem.