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The power industry experiences revolution known as "Power Industry Structure Renewal" mainly due to increasing progresses in science and technology which will result in a gradual change in methods of communication with energy tools. Part of the
revolution is the application of small generation units in power generation; units with lower generation volume capacity, and cost compared to the enormous generators and power station. Increasing demand for electrical energy along with increasing efficiency of small energy-generation units has made power companies to exploit the units in distribution system close to loads. These small energy-generation units which are connected to distribution system are referred to as "Distributed eneration"
(DG).Privatization of power industry and development of renewable energy are among the other important factors in the expansion of these generation units. DGs play a key role in
distribution system. Improvement of reliability, voltage profile, stability and loss-reduction indices are considered as key issues in the utilization of DGs. Regarding the fact that positioning of DG resources for improvement of voltage profile and reduce losses has not yet been taken into account, the present study indicates that placing and application of DGs by proposed optimization algorithm will reduce losses and improve voltage profile of
power systems. This method has been simulated on IEEE standard network. The obtained results reveal that effectiveness of the proposed algorithm.
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