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CRIEPI proposed the autonomous demand area power system (ADAPS) as a new concept of future demand area distribution system to cope with large penetration of distributed power generation including PV system. In order to increase possible penetration rate of PV system with resolving grid interconnection issues on power quality, safety and reliability of the grid, new composition and operation measures adopted in the grid side and PV system side in the ADAPS are investigated. In the paper, new grid network configuration using loop-shaped form is proposed. New devices to control grid voltage, power flow and PV system operation using advanced power electronics and communication system are also discussed.