Abstract: This paper proposes a Genetic Algorithm (GA) optimization technique for optimal allocation of Distributed Generators in the distribution network to maximize the benefits to the Local Distribution Company(LDC), as well as the customers connected to the system. The suggested methodology programmed under MATLAB software, helps to identify the optimal buses on which to connect these DG units. The benefits which are considered in this paper are postponement of upgrade investments, reduction of the cost of energy losses and reliability improvement. The implementation of the algorithm is illustrated on a 39-bus test system.

Keywords: Distributed Generation, Distribution system, Genetic Algorithm