Purpose The use of power sectionalizers in electric power distribution networks as disconnecting devices for optimum network configuration is indispensable. Major reasons to use sectionalizers, here manual sectionalizers, is their lower installation and operating prices compared to other types of disconnecting devices and that most of conventional realistic electric power distribution systems are still using manual sectionalizers due to their ease of procurement. However, in case of failure for these switches, power supply interruptions are unavoidable unless optimum solutions are used for configuration (and possibly reconfiguration) of sectionalizers. Thus, in this research, binary exchange market algorithm (BEMA) as a novel evolutionary metaheuristic is used to meet the maximized customer satisfaction by optimized configuration of sectionalizers within electric power distribution networks in the presence of distributed generations (DGs). To solve the problem, BEMA is used on sectionalizing switch placement problem, which has only two open and close (0/1) states. A novel multi-objective optimization problem has been formulated as a function of two aspects, namely, improved reliability index (for customer benefit) and minimized sectionalizing switch costs (for utility benefits). Simulations are carried out in three different case studies to validate the effectiveness of the BEMA both in theory and practice: Standard IEEE 33-bus test system, practical feeder-8 of MeshkinShahr Town’s electric power distribution network in northwest of Iran; and Roy Billinton test system Bus 4 (RBTS-Bus 4). The obtained results are compared with those of the previously validated ant colony optimization (ACO) technique in RBTS-Bus 4. Design/methodology/approach The optimum configuration of sectionalizers in the presence of DGs has been formulated as a multi-objective function consisting of two conflicting objectives. First objective is to improve the power distribution network reliability indices. Second objective is to fulfill the first objective with a minimized sectionalizing switch cost. The latter is probably obtained by reducing the number of installed sectionalizers. The obtained results by BEMA have been compared with those of ACO technique. Findings In this paper, optimal configuration of sectionalizers has been performed based on a multiobjective function by binary exchange market algorithm. By simulations carried out on two standards and one practical test systems, the proposed algorithm effectiveness was confirmed and the obtained results were compared to ACO algorithm. Changing weighting factors shows that better satisfaction can be obtained when difference between the weighting factors is relatively greater. In other words, the reliability membership function is more than switch cost membership, and thus, if the values of two weighting factors are close enough, the satisfaction level reduces. The number of installed sectionalizing switches by BEMA and ACO techniques in different scenarios were performed. Originality/value Proposal of a novel multi-objective function for finding optimal location of sectionalizers in the presence of DGs with binary exchange market algorithm whose merit over the other heuristics is to consider all the problem specifications only in one multi-objective function. Despite previously reported works that have used various high-priced protective devices for achieving the enhanced reliability this research only utilizes inexpensive manual sectionalizers with the least possible cost in the presence of DGs. Two standard test cases IEEE 33-bus test system and RBTS-Bus 4 and one realistic test case feeder-8 of MeshkinShahr Town power distribution network in northwest of Iran are used to demonstrate the effectiveness of the proposed technique in theory and real-world applications. Thus, utilities may take the advantage of the proposed method for configuration of sectionalizers in their own local power distribution systems throughout the country.