This paper presents a new methodology using Particle Swarm Optimization(PSO) for the placement of Distributed Generators(DG) in the radial distribution systems to reduce the real power losses and to improve the voltage profile. A two-stage methodology is used for the optimal DG placement. In the first stage, single DG placement method is used to find the optimal DG locations and in the second stage, PSO is used to find the size of the DGs corresponding to maximum loss reduction. The proposed method is tested on standard IEEE 33 bus test system and the results are presented and compared with an existing method
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