This paper describes the possible evolution of Italian distribution system in facing the growing penetration of Dispersed Generation (DG), in the perspective of smart grids. As for the Italian system, after discussing the Hosting Capacity of MV distribution networks, it is recognized that some challenges are to be faced due to the increasing amount of DG. Even though current technology provides satisfactory solutions to manage this new situation, loss-of-mains protection (LOM) is one of the most critical issues to be faced, at least for the Italian system. Only an intelligent use of Information and Communication Technology (ICT) will overcome the current limitations and make possible a larger DG penetration without hindering system security. Milano Wi-Power is a project undertaken by Politecnico di Milano dealing with the critical aspects of the communication systems applied to distribution networks. The specific goal is to test and validate, both through simulations and field trials, possible communication systems able to connect primary substations with DG units along the network.