This paper addresses generation of electricity in the specific aspect of finding the best location and sizing of biomass fueled gas micro-turbine power plants, taking into account the variables involved in the problem, such as the local distribution of biomass resources, biomass transportation and extraction costs, operation and maintenance costs, power losses costs, network operation costs, and technical constraints. In this paper a hybrid method is introduced employing discrete particle swarm optimization and optimal power flow. The approach can be applied to search the best sites and capacities to connect biomass fueled gas micro-turbine power systems in a distribution network among a large number of potential combinations and considering the technical constraints of the network A fair comparison among the proposed algorithm and other methods is performed. (C) 2012 Elsevier Ltd. All rights reserved.