Low-voltage distribution networks represent a component of the power system with the most prominent problems in terms of voltage quality and losses of electrical power which is delivering to the end customers. Overcoming of such problems is a real challenge for distribution companies, since they are obliged to deliver electricity of standard quality to the end customers, but at the same time taking care of their own interests. In this paper, a method based on hierarchical algorithms applicable in the planning of low-voltage distribution networks is presented. The planning of such networks includes determining of an optimum location of substation, radial network configuration, as well as appropriate types of power lines, all in order to achieve the prescribed voltage levels and minimize the power losses in electricity transmission.
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