decreasing the technical losses 6, 7.

The power generatedfrom these DGs is not connected to the national grids as theyrange from few kilowatts (KW) to several megawatts (MW)8, 9. Radial distribution systems are much modest but aremore exposed to outages instead of interconnected system.During normal operating conditions the loads accomplish itsrequired power demand, but if any fault occurs, the circuittrips causing failure to power flow.

Despite the fact thatdistribution systems have localized effects, statistics shows thatdistribution system failure affects the system as much as 85to 90 percent towards the unavailability of supply to load ascompared with failure of other parts of electric power system10. Amalgamation of DG in the distribution system willprovide an extra power for operation of loads even under faultyconditions. The placement of DG and protection devices willaffect the reliability of system with respect to DG penetration11.Researchers are eager to develop such systems which arefeasible, economical and time saving to cope with the increasingpower demand and improve power system reliability. Inthis regard, distributed generation is considered to be the powerparadigm for the new millennium. Distributed generation hasa vital impact on power system, for this purpose, distributedgeneration source is connected to distribution system causingvariation in power flow and reliability factors. This dependson the optimal location, size and number of distributed generation.

Power generation and utility companies are lookingfor techniques to reduce costs and still provide the acceptablelevel of reliability necessary for the customers satisfaction. Onesolution is to add distributed generation with right configurationsinto distribution system. In this research the impact ofdistributed generation on the reliability of distribution systemwill be analyzed.

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