The SuSTAINABLE project will develop and demonstrate a new operation paradigm, leveraging information from smart meters and short-term localized predictions to manage distribution systems in a more efficient and cost-effective way, enabling a large-scale deployment of variable distributed resources.The SuSTAINABLE concept is based on the cloud principle, where the distribution system operator i) collects information from smart metering infrastructure and other distributed sensors, and communications from external partners, market operators, and maintenance staff; ii) processes the information using tools such as distribution state-estimation, prediction tools, data mining, risk management and decision-making applications; iii) communicates settings to power quality mitigation devices, protection relays and actuators, distribution components and distributed flexible resources; iv) assesses its market strategy as a provider of ancillary and balancing servicesThe SuSTAINABLE concept also involves an active management of distributed flexible resources by DSOs. A multi-objective decision-making scheme will be designed to keep network voltage inside operational constraints, minimize DG energy spillage related to network constraints, minimize operational expenditures related to high reliability and continuity of service for loads and generators, minimize aging of automatic tap changers subjected to sudden variations of power flows, and maximize the balancing and ancillary services to be provided to TSOs when necessary. It will also focus on flexible protection schemes, to avoid failures in selectivity and reliability of the protection plan in low-impedance earthed neutral MV networks related to DG integration.Finally, the market strategy to be defined by the SuSTAINABLE concept encompasses aspects related to flexibility pricing for distribution network users and distribution system operators´ strategies with respect to balancing and ancillary services markets.