International Journal of Electrical and Computer Engineering (IJECE) Vol. 6, No. 2, April 2016, pp. 504~511 ISSN: 2088-8708, DOI: 10.11591/ijece.v6i2.9184  504 Journal homepage: http://iaesjournal.com/online/index.php/IJECE Optimal Location of Distributed Generation and its Impacts on Voltage Stability Manoj Kumar Nigam, V.K. Sethi Department of Electrical Engineering, R.K.D.F. University, Bhopal, M.P., India Article Info ABSTRACT Article history: Received Oct 12, 2015 Revised Dec 12, 2015 Accepted Jan 3, 2016 Distributed generation (DG) technology is based on the renewable sources of energy. Now a day’s distributed generation plays an important role of power generation utilities to fulfill the increasing demand of power at the costumer’s site. A distributed generation is the small generation unit with capacity varying from kW (kilowatt) to few MW (megawatt). The main aim of this paper is to find the solution for optimal location of connecting DG and also the disturbances in the voltage fluctuations responds to imperfection of connecting DG. A test network of IEEE-30 bus system has been simulated using PSAT 2.1.7. The compensation methods have also been developed for filtering out the disturbances caused by the DG connection. The disturbance in the voltage profile is improved byminimizing the real and reactive power losseswith the help of STATCOM. The proposed approach IEEE-30-bus system was tested and the result was discussed. Keyword: Compensation Distributed generation Green house gases Network grid Renewable sources Copyright © 2016 Institute of Advanced Engineering and Science. All rights reserved. Corresponding Author: Manoj Kumar Nigam Department of Electrical Engineering, RKDF University. Airport Bypass Road, Gandhi Nagar, Bhopal, Madhya Pradesh 462033, India Email: nigam74_123@yahoo.com 1. INTRODUCTION The existing methods of power generation employs a central power generation plant which is either a nuclear power plant or a coal based power plant to generate the power in thousands of MW (megawatt). Typical methods were undertaken in these power plants for the combustion of coal, oil and other natural resources. These methods produces environmental disturbances, health issues in human beings, emission of green house gases etc. wherein the generated power is to be transmitted over a long distance through transmission line to reach to the costumers at far off places and creates the losses due to increased length of transmission line. To minimize these effects, DG may be installed at the costumer’s site that employs small-scale technologies to produce electricity close to the end users. DG technologies offer a number of potential benefits consisting modular (and sometimes renewable-energy) generators. In many cases, distributed generators can provide lower-cost electricity and higher power reliability and security with fewer environmental consequences than the traditional power generators. In view of the use of a few large-scale generating stations located at quite away from load centers, DG systems employ numerous small power plants and may be useful to provide power with a little dependence on the distribution and transmission grid. DG can be defined as the installation and operation of electric power generation units connected directly to the distribution networks or connected to the network on the customer of the meter [1]. Thus, a DG technology offers several advantages like:  It accelerates the system flexibility to supply power demand at fluctuating loads with minimum environmental disturbances,  Lesser ill effects on human health,