Distributed generation (DG) integration in PLN’s extended distribution network often encounters voltage instability issues due to high voltage drops. These challenges restrict power delivery and can lead to disconnection, particularly during peak load conditions. This study investigates methods to enhance voltage stability and optimize the energy output of PLTM Salido. Using ETAP Power Station software, various operational schemes were simulated to address the problem of low terminal voltage. The study focused on the impact of reactive power injection and governor settings optimization to maintain generator performance under high demand. Results indicate that reactive power injection significantly improves terminal voltage, ensuring continuous power delivery. Adding a third generator unit further increased energy supply capacity, leveraging the full potential of available hydropower. The optimized operation of PLTM Salido with two generators increased daily energy output by 32.2%, while introducing a third generator boosted energy delivery by 107%. This research highlights the critical role of reactive power management and system configuration in enhancing the performance of small-scale hydropower plants in rural distribution networks.
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