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The addition of new generation capacity increases the fault current levels in power systems. New generation and transmission capacity additions can be limited by the fault current constraints in power systems. The superconducting fault current limiter (SFCL) has great potential as a special protection device to limit the fault current in the event of a fault in power systems. Installations of SFCLs can alter fault current levels in power systems, thereby influencing the power system planning. This paper presents fault current constrained decentralized optimal power flow (OPF) for generation system planning incorporating a SFCL. The numerical simulation results are presented to show the effectiveness of the proposed method.