Abstract Power systems around the world have undergone a number of important organizational, structural and technological changes over the past few decades; they are a direct consequence of the electricity market liberalization and transition from conventional energy conversion technologies towards renewable resources. These changes represent many advantages as well as challenges for the Distribution System Operator (DSO). The aim of this paper is to review the most important principles, objectives and technical criteria used in planning the development of the electricity distribution network. Presented principles can be used as basic guidelines when developing short-term and long-term plans for the construction and reconstruction of power distribution facilities. This paper also presents a methodological approach to the planning and ranking of proposed electricity facilities with an example from practice that is based on the real planning problem in ED Mostar. The basic conclusion of the paper is that the identification of objectives, criteria and the application of an appropriate and unique methodology is of the utmost importance for formulating the framework of the planning process.

This paper presents a new algorithm for distribution system reconstruction planning based on Mamdani type fuzzy inference and BellmanZadeh multi criteria decision making method. The proposed algorithm takes system attributes as inputs (number of customers served by renewed infrastructure, energy losses, power demand and cost of investment) and returns crisp output values which are used as planning criteria. The aim of this paper is to provide a logical decision making framework which can be used to model, evaluate, and rank projects according to required criteria. The proposed model is flexible and can be extended to include additional planning criteria. The proposed method is tested on a realistic distribution system to demonstrate its relevance. It is expected that this paper will make a contribution toward more effective management of power distribution network planning process and that it will be used by planning engineers in practical problems.