This paper presents a proposed function which is known as techno-economic model for optimal placement of distributed generation (DG) resources in distribution systems in order to minimize the power losses and improve voltage profile. Combined sensitivity factors (CSF), such real power loss reduction index, reactive power loss reduction index, voltage profile improvement index, and life cycle cost, and particle swarm optimization (PSO) are applied to the proposed technique to obtain the best compromise between these costs. Simulation results on IEEE 14-bus test system are presented to demonstrate the usefulness of the proposed procedure.
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