This paper presents the distributed series reactor (DSR) as a low cost D-FACTS technology that can be easily clamped on working transmission lines at higher operational reliability and without the need of any communications or centralized
control. Smart wires are standard transmission lines that are augmented with a large number of DSRs. The paper addresses the potential of the emerging smart wire technology in improving the utilization and reliability of the existing transmission, sub transmission, and distribution networks. It proposes a smart-wire based strategy for planning power systems with increasing penetration level of wind generation. Moreover, the paper evaluates the potential of the smart-wire technology to reduce the required investment for congestion-free transmission system upgrading plan. The proposed approach is applied to the IEEE 39-bus and IEEE 57-bus test systems. Comparative analysis of results is provided for the classic and smart planning methods.