Optimal location of distributed generators (DGs) in a utility-connected system is well described in literature. For a utility-connected system, issues related to small signal stability with DGs are insignificant due to the presence of a very strong grid. Optimally placed sources in utility connected microgrid system may not be optimal/stable in islanded condition. Among others issues, small signal stability margin is on the fore. The present research studied the effect of location of droop-controlled DGs on small signal stability margin and network loss on an IEEE 33-bus distribution system and a practical 22-bus radial distribution network. A complete dynamic model of an islanded microgrid was developed. From stability analysis, the study reports that both location of DGs and choice of droop coefficient have a significant effect on small signal stability and transient response of the system. For multi-objective optimization of the DG network, Pareto fronts were identified and the non-dominated solutions found with two and three generators. Results were validated by time domain simulations using MATLAB.
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