In Norway, distribution companies experience that the grid regulatory regime, has not developed in line with the pressure stemming from the growth of distributed generation (DG). This paper presents two major nontechnical challenges for the distribution companies. Firstly, the lack of incentives to ensure a holistic planning of the grid, and secondly, the communication challenge between the DG owner and the Distribution System Operator (DSO) in terms of information flow and dialogue through the process. Several initiatives have been taken to meet these challenges. However, the problems are still present. The paper seeks to address the existing plans in Norway for DG integration of small scale hydro power and grid development and assesses whether better use and coordination of regional and local plans can reduce the uncertainty faced by the DSOs through providing a more predictable picture of the DG development process for the actors involved.
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