Planning the distribution systems strategically will lay a solid corner stone for a Smarter future.When the integration of distributed energy resources increases, more and more distribution power systems may be capable of operating as a microgrid, with the ability to operate in parallel with the grid or as an island. The challenges that utility planning engineers are facing are like never before. Recent major storms in the US blacking out some of the biggest cities in the world are forcing government agencies and utilities to increase reliability and reduce peak demand at the same time. Opportunities to electrify rural communities via microgrids are gaining significant interest. Before the detailed engineering design of any microgrid, a power system and economic planning study should be performed to determine the optimal techno economical specifications, i.e. location, type and size of devices, optimal operation methodologies, compliance with standards and regulatory agencies, and cost benefit analysis etc.