A growing need in the electrical power industry for engineers who can perform professionally both in technical aspects and generic engineering skills has put a demand on universities to modify their programs and course structures. To address this demand, a course in power system analysis which used project based learning (PBL) methodology was developed. As a part of this development a power system laboratory was established, which gave students access to professional software packages. Projects were defined in the areas of power system operation and planning. These projects were used as stimuli for student learning. Portfolio assessment was used to assess students learning outcome. The course was delivered for the first time in 2008. The feedback from students was very positive and promising.