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Power system planning relies on two major factors, namely, the load growth and the power security. In addition it considers secondary issues such as design simplicity, environmental concerns and system protection. These are addressed by upgrading or expanding existing network. Distributed Generations (DG) have been increasingly adopted in many utility systems due to many potential benefits on the power delivery systems including its impact to offset the conventional investments incurred by system demands & security needs and hence can offer an alternative option for addressing system requirements. This paper presents a simple two-phase approach that involves DG in the planning process along with the impact that can be obtained from the DG on avoiding the investment. The results demonstrate the potential economic benefits of the DG and the impact of the DG technology.