With time the electrical power demand and so the DG penetration has increased highly. As the present conventional power systems structure is not well-suited with these energy generation schemes. Therefore to house this high diffusion of distributed generation proper planning is required. This study offers an analytical approach to compute the optimum site and size of installing DG unit for minimizing power losses. The power injections from DG units deviate the system’s power flows, thus effecting voltage steadiness and the system losses. In the proposed mathematical model, the maximum size of integrating DG at each bus is calculated using the load and injecting power at each bus. The given mathematical model is simulated in MATLAB. The maximum size and site of DG integration is found with a decreasing power losses of the system.
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