Distributed generators (DGs) are proposed as a possible solution to supply economic and reliable electricity to customers. It is adapted to overcome the challenges that are characterized by centralized generation such as transmission and distribution losses, high cost of fossil fuels and environmental damage. This work presents the basic principles of integrating renewable DGs in low voltage distribution networks and particularly focuses on the operation of DG installations and their impacts on active and reactive power. In this thesis, a novel technique that applies the stochastic approach for the operation of distribution networks with considering active network management (ANM) schemes and demand response (DR) within a joint active and reactive distribution market environment is proposed. The projected model is maximized based on social welfare (SW) using market-based joint active and reactive optimal power flow (OPF). The intermittent behaviour of renewable sources (such as solar irradiance and wind speed) and the load demands are modelled through Scenario-Tree technique. The distributed network frame is recast using mixed-integer linear programming (MILP) that is solved by using the GAMS software and then the obtained results are being analysed and discussed. In addition, the impact of wind and solar power penetration on the active and reactive distribution locational prices (D-LMPs) within the distribution market environment is explored in terms of the maximization of SW considering the uncertainty related to solar irradiance, wind speed and load demands. Finally, a realistic case study (16-bus UK generic medium voltage distribution system) is used to demonstrate the effectiveness of the proposed method. Results show that ANM schemes and DR integration lead to an increase in the social welfare and total dispatched active and reactive power and consequently decrease in active and reactive D-LMPs. / Ministry of Higher Education and Scientific Research - Iraq / The selected author's publications, the published versions of which were attached at the end of the thesis, have been removed due to copyright.