The number of small scale generation units (or Distributed Generation (DG)) worldwide is increasing rapidly. Norway has a large potential for hydropower which leads to expectations that the number of small scale hydro generation units to be connected to the MV distribution system will increase in the years to come. However, as more DG connects, more challenges are induced into the distribution system. In order to ensure stable and secure system operation, several rules and regulations are necessary. This paper focuses on the network code proposed by the European Network of Transmission System Operators for Electricity (ENTSO-E) in June 2012, which, when applied in Norway, will introduce new requirements both to the DG owners and distribution system operators (DSOs). The paper discusses some of the changes the new network code will likely impose on the distribution network operators and on the existing and future DG units in the distribution system.