Summary
Distributed generation (DG) has attracted significant attention due to its great potential for enhancing economical and technical performance of power systems and reducing dependence on fossil fuels. Optimal sizing and placement are critical for stimulating such potential, about which a considerable number of models and algorithms have been proposed in past literature. This paper attempts to undertake a comprehensive review on optimal sizing and placement of DG via a systematic methodology procedure, including definition and classifications of DG, modelling and problem formulation with different technical and economic criteria, and summary of optimization algorithms. Common features and distinctive characteristics of both models and methods are identified, followed by evaluations and comparisons based on their practical performance in various test systems. Selection of DG techniques with respect to application scenarios, indispensable and optional considerations in DG planning models, and pros and cons of algorithms are listed in tables for a clearer understanding. Lastly, a total of 107 algorithms are addressed, which are classified into five categories. Particular, hybrid methods can deal with complex engineering problems with multiple objective functions and constraints most effectively and robustly. Future research trends are also highlighted with the aim of providing a comprehensive and state‐of‐the‐art survey for researchers, engineers, and other stakeholders.