This paper is an overview of some of the main issues in photovoltaic based distributed generation (PVDG). A discussion of the harmonic distortion produced by PVDG units is presented. The maximum permissible penetration level of PVDG in distribution system is also considered. The general procedures of optimal planning for PVDG placement and sizing are also explained in this paper. The result of this review shows that there are different challenges for integrating PVDG in the power systems. One of these challenges is integrated system reliability whereas the amount of power produced by renewable energy source is consistent. Thus, the high penetration of PVDG into grid can decrease the reliability of the power system network. On the other hand, power quality is considered one of the challenges of PVDG whereas the high penetration of PVDGs can lead to more harmonic propagation into the power system network. In addition to that, voltage fluctuation of the integrated PVDG and reverse power flow are two important challenges to this technology. Finally, protection of power system with integrated PVDG is one of the most critical challenges to this technology as the current protection schemes are designed for unidirectional not bidirectional power flow pattern.

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The presence of optimized distributed generation (DG) with suitable distribution network reconfiguration (DNR) in the electrical distribution network has an advantage for voltage support, power losses reduction, deferment of new transmission line and distribution structure and system stability improvement. However, installation of a DG unit at non-optimal size with non-optimal DNR may lead to higher power losses, power quality problem, voltage instability and incremental of operational cost. Thus, an appropriate DG and DNR planning are essential and are considered as an objective of this research. An effective heuristic optimization technique named as improved evolutionary particle swarm optimization (IEPSO) is proposed in this research. The objective function is formulated to minimize the total power losses (TPL) and to improve the voltage stability index (VSI). The voltage stability index is determined for three load demand levels namely light load, nominal load, and heavy load with proper optimal DNR and DG sizing. The performance of the proposed technique is compared with other optimization techniques, namely particle swarm optimization (PSO) and iteration particle swarm optimization (IPSO). Four case studies on IEEE 33-bus and IEEE 69-bus distribution systems have been conducted to validate the effectiveness of the proposed IEPSO. The optimization results show that, the best achievement is done by IEPSO technique with power losses reduction up to 79.26%, and 58.41% improvement in the voltage stability index. Moreover, IEPSO has the fastest computational time for all load conditions as compared to other algorithms.