Distributed generation (DG) has an overall positive impact on Microgrids. These DGs are usually located close to the load centers which lead to some benefits such as; system power loss and energy cost reduction; voltage profile and stability improvement; environmental friendliness, postponement system upgrading and reliability enhancement. In this paper, a novel combined method based on Genetic Algorithm (GA) and Intelligent Water Drops (IWD) is proposed to find location and capacity of DG in Microgrids for optimizing some objective functions. The objectives are minimizing network power losses, improving voltage regulation and increasing the voltage stability within the framework of system operation and security constraints in Microgrids. In this paper, DG units are modeled as generators that are able to inject just active power to network. The Intelligent Water Drops (IWD) algorithm is a new swarm-based optimization algorithm inspired by observing natural water drops that flow in rivers. A detailed performance analysis is carried out on 69-bus and 33-bus Microgrids to demonstrate the effectiveness of the proposed methodology.
