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Summary: Enhancing distribution system operation accomplished with the integration of renewable energy resources (RERs) has several technical, economical, and environmental dimensions. In this regard, this paper presents an optimal integration procedure of Distributed Generation (DG) based on Photovoltaic panel (PV) and Distribution Static Compensator (DSTATCOM) in Electrical Distribution System (EDS). The proposed procedure is formulated as a multi‐objective function (MOF). The considered objectives that reflect the technical, economic, and environmental issues, are Active Power Loss Level (APLL), Short Circuit Level (SCL), Voltage Deviation Level (VDL), Net Saving Level (NSL), and Environmental Pollution Reduction Level (EPRL). The proposed procedure investigates several hybrid optimization methods that combine the firefly algorithm (FA) with various acceleration coefficients PSO algorithms to improve the overall solution quality of the hybrid algorithms compared with the individual algorithms. To prove the capability of the proposed procedure, four different cases are tested on IEEE 33‐bus and 69‐bus EDSs. Added to that, the proposed algorithms are extended to practical Algerian EDS in Adrar City 205‐bus. Results obtained by the hybrid FA‐SCAC‐PSO algorithm showed that the simultaneous allocation of multiple DG and DSTATCOM in all standard and practical test systems significantly reduces the loss and enhances the voltage profile. An energy‐efficient analysis to proceed for different cases studied based on the best hybrid FA‐SCAC‐PSO algorithm to reach the best value of MOF compared to other algorithms, moreover the capability to achieve the optimal allocation of DG and DSTATCOM by maintaining the voltages profile within the permissible limit, whatever the variation of load. Significant technical economic and environmental achievements are found for different case studies especially in the existence of DGs and DSTATCOM devices. [ABSTRACT FROM AUTHOR]

An essential part of the smart grid development is to connect the main transmission grid with microgrids that consist of distributed generation resources. The integration of microgrids and the transmission grid not only can improve the reliability of the power system operation but also can increase the competition of the electricity market. The effective trading between microgrid agents and a distribution company (DisCo) is consistent with the direction of smart grid development. Developing effective strategy to optimally schedule energy trading between microgrid agents and the DisCo will bring benefits to all parties and promote further development of distributed clean energy. By analyzing the operation characteristics of the electricity market with the addition of microgrid agents as new market participants, this paper presents a bi-level optimization model that aims to maximize the benefits of microgrid agents and a DisCo while considering transmission loss factors from various generators, duality role of the microgrid agents who can either buy electricity from the wholesale market at volatile prices or sell electricity into the market or to its local consumers. The model presented in this paper jointly optimizes the energy schedules of the microgrid agents and the DisCo and determines the bid/offer price at which the microgrid agent buys and sells electricity from/to the DisCo. At last, simulation results are provided to demonstrate the feasibility and application of the proposed two-level optimization model. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]