This paper proposes the application of Particle Swarm Optimization (PSO) technique to find the optimal size and optimum location for the placement of DG in the radial distribution networks for active power compensation by reduction in real power losses and enhancement in voltage profile. In the first segment, the optimal size of DG is calculated at each bus using the exact loss formula and in the second segment the optimal location of DG is found by using the loss sensitivity factor. The analytical expression is based on exact loss formula. The optimal size of DG is calculated at each bus using the exact loss formula and the optimal location of DG is found by using the loss sensitivity factor. The proposed technique is tested on standard 33-bus test system and the obtained results are compared with the exhaustive load flows.
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