The size and location of DG are the crucial factors in the application of DG for loss minimization. This book presents an algorithm for the identification of bus location using Sensitivity analysis and also an algorithm for the determination of size of the DG using PSO. This methodology is tested on IEEE 15 bus system. By installing DGs at all the potential locations with the determined sizes, the total real power loss of the system has been reduced by 83% and the voltage profile of the system is also improved. The harmonics that are present in the system are reduced by placing capacitors at...