LAUSR

Power losses cause the underutilization of distributed generation (DG) units in addition to the cost increasing in microgrid. Minimizing these losses has been focused in many papers. Using energy storage system (ESS) is a crucial solution for loss reduction. ESS can balance the power exchange in on‐peak times where its location and size optimization can improve the microgrid efficiency and reduce the loss cost significantly. Moreover, to ensure the power quality by improving the voltage profile, capacitor bank can be installed optimally on some buses. Optimization of size and location of the capacitor bank can enhance the reactive power that is leading to power loss reduction. In other words, the capacitor bank is applied to compensate the total reactive power and consequently, the current is reduced that results in power loss reduction. In this article, the problem is defined as the optimum location and size of ESS and capacitor bank in the microgrid. Due to the complexity of the problem in many options for selecting the buses to implement these elements (ESS and capacitor bank), robust approach using the particle swarm optimization algorithm and general algebraic modeling system are applied for optimization process. In addition, the uncertainty of renewable DGs such as photovoltaic and wind turbine is modeled by probability density functions and Monte‐Carlo is used for selecting more probable cases in optimization processes. The results show the loss cost reduction and improvement in voltage and power profile with less fluctuations and more stability.