Summary With increasing annual energy demand and significant growth in the use of distributed generation (DG), distribution companies are exploring ways to improve the technical specifications of the distribution networks such as power losses, customer interruption costs, and voltage stability and on the other hand to increase the penetration level of DGs. In this paper, a multi‐objective optimization model is proposed for distribution network reconfiguration (DNR) to decrease the total costs of energy losses and energy not supplied (ENS) and increase the voltage stability and DG penetration level. Seasonal hourly load curves are applied, and best configuration is determined for each loading condition. Uncertainties regarding the load variations and volatile power production of wind turbine are modeled using a 2‐point estimate method, and a benefit‐cost analysis is used to assess the effects of depreciation cost in DNR problem. The proposed model is applied on 2 typical test systems.

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