In the conversion process of the current electricity distribution grids to the future smart-grid structures, the major tasks to:•accommodate energy production of all sizes•empower customers for active market participation•improve sustainability of energy supply•customize power quality for different needs•optimize regional grid use and balancing•increase reliability and security of supply•enable new players, products and servicesare considerably affecting the role of the Distribution Service Operators (DSO). National and European policies aim at increasing the use of new sources of energy, with major potentials in distributed electricity generation. Complemented by measures for energy recovery and efficient use of energy, with major potentials in distributed combined heat/power production, reduction of primary energy consumption through introduction of electric vehicles is also expected. The REDESG project ‘Reliable and Efficient Distributed Electricity Generation in Smart-Grids’ aim to ensure the integration of the new technologies, crucially depending on the grid operators to maintain reliability, safety and security in a much more complex situation with an increasing number of feed-in units to be accommodated. Considerably extended functionalities become feasible through additional Information and Communication Technology (ICT), equipping the medium and low-voltage grids with an additional ICT layer. Apart from securing the communication structures, methods for maintained reliability, extended protection and best power line usage are developed here for the supervisory control and data acquisition (SCADA ) layer. Beginning with smart metering implemented this decade, smart grids are expected to reach major coverage with technology and services within one to two decades in Luxembourg and Europe. The project is part of SnT’s long-term smart-meter/smart-grid strategic framework, currently prepared together with Luxemburg’s utility CREOS, to be extended to the relevant electricity producers and equipment manufactures.