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This research studies the impact of introducing distributed generators (DGs) into a distribution network. The aim of this paper is to optimally site DGs based on economic, environmental and reliability indices are presented.

The considered network was modelled by using the network’s line parameters and capacity of the load bus with the help of Power System Analysis Toolbox. The location of the DG is based on voltage stability index and power loss reduction index. The DG energy sources considered are the diesel generator, solar photo-voltaic (PV) and wind generator, and the objectives were to minimize cumulative cost while maximizing reliability of the network. The Advanced Interactive Multidimensional Modelling System was used for the mathematical modelling.

The obtained results in the cases of introducing renewable energy into a network improves network performance. The benefits of renewable energy on the distribution network measured in terms of electricity production cost, gas emission cost, fuel cost and value of energy not supplied were positive. The research also showed that the total benefit of renewable energy reduces as the price of the renewable generators increases.

This paper introduces a new approach to determining the optimal location of DG for reducing line losses and improved voltage profile. A new cost modelling function based on external grid power transfer cost, technical losses and cost because of the various energies source is also introduced.