**Abstract**

The smart grid involves a set of interconnected ecosystems applications (electrical, electronic, computer and communications), so the modernization is needed of information, security and infrastructure systems that monitor, control and manage them are increasingly evident. The upgrading smart grid process is a complex interaction between different alternatives and adequate selection of assessment criteria, where tangible and intangible items must be chosen with little information or with uncertain data. This work presents a framework within the context of the Smart Grid, to provide electric energy companies with a tool for planning the modernization of their generation, transmission, distribution and marketing systems. The planning of the modernization networks under the smart grid concepts is represented based on Smart Grid Architecture Model (SGAM) reference model. Furthermore, it presents how to integrate a pilot project (Smart Grid information source) into the SGAM reference model, through the identification of key performance indicators defining it. Multi-criteria analysis (MCA) combined with cost/ benefit analysis (CBA) concept is explored, providing a novel insight into the approaches used in smart grid research applied at a case study: a distribution grid for rural smart grids.

**Keywords:** Smart-Grid, Project Planning, Cost/Benefit Evaluation, Analytic Hierarchy Process, Distribution Grid
