One of the main research topics inside this thesis will be on what the effect will be on the present protection scheme when distributed generation units are extensively implemented inside the distribution system. The application of distributed generation will have an impact on the present protection scheme. This because the distributed generation units will, besides the external grid, contribute current as well to a faulty component initiated inside the distribution system. Hence the energy flow during a fault will change from radially to meshed perspective. This will ultimately have an impact on the reliability of the protection scheme which will be studied during this research. Currently one of the main reasons the topology of the distribution system is mostly set radially is due to the implications the present protection scheme will encounter, regarding protective coordination, during a fault inside a meshed operated system. In this research a proposal will be given on how this protection scheme can be enhanced with the help of Smart Grid technologies to still provide the appropriate protective coordination inside a meshed operated distribution system. As mentioned earlier these technologies are the implementation of a communication infrastructure with the latest IEC 61850 communication protocol and the use of substation automation systems (IED - intelligent electronic device).