Minimizing power loss and improving voltage stability are crucial aspects of power systems, driven by transmission line contingencies, financial losses for utilities, and potential power system blackouts. Optimal allocation comprising the sizing and operating power factor—of Distributed Generation (DG) units and capacitor banks (CBs) significantly enhances power system efficiency. Efforts by power system operators and researchers focus on addressing issues related to power loss, energy loss, voltage profiles, and voltage stability through the strategic placement of DGs and CBs. Additionally, optimal DG and CB allocation protects the distribution system from unforeseen events and enables operators to run the system in islanding mode when necessary. The integration of DG units and CBs in distribution systems aims to enhance overall system performance. This research paper introduces a Water Cycle Algorithm (WCA) for the optimal placement and sizing of DGs and CBs. The proposed method targets both technical and economic benefits, considering multiple objective functions: minimizing power losses, reducing voltage deviation, lowering total electrical energy costs, and improving the voltage stability index. The WCA emulates the natural water cycle, from streams to rivers and rivers to the sea. Five different operational scenarios are evaluated to test the performance of this methodology. Simulations are conducted on distribution systems: the IEEE 69-bus test system and the Sankhu feeder network, a real system. The results demonstrate the superior performance of the proposed WCA compared to other optimization algorithms. The findings highlight the WCA's flexibility, efficiency, and significant improvements in economic benefits, establishing it as a promising approach for optimizing the placement of DG and CB in distribution systems.
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