Installation of DG for optimal demand compensation

The increase in demand, due to rapid industrialization and up gradation in living standard of peoples, has become a serious problem in developing countries. This draws the attention of utility, government and researchers towards the installation of Distributed Generation (DG). Installation of DG has encouraging effects as well as unenthusiastic impacts on the existing power network. These impacts of DG depend on its size and location in the exiting power network. In this paper two stage methodology is used for optimum demand compensation. In first stage only a single capacity DG is considered and in second stage two DGs are considered for compensating the demand. Proposed method is simulated on the IEEE 33 bus standard network and results are presented.