In recent years, distributed generation has garnered increasing attention and, because of developments in technology, has started to find wider use in industry. Over the last few years, it has been more important to have a solid understanding of the integration of these systems into the existing network of electric power systems via the use of PE interfaces. This research investigates harmonic generation and its connection to problems with power quality on three-wire systems and the factors that contribute to harmonic creation. The existence of non-linear loads is the aspect that contributes the most significantly to the generation of harmonic distortion. In this research, the power representation of solar, wind turbines, fuel cells, and the grid were all analysed. The technique recommend is IBSMFO, is fundamentally an implementation of the Improved Bat Search Algorithm (IBSA) by means of the Moth Flame Optimisation Algorithm (MFOA). The MFOA has made sure that the searching behaviour of the IBSA is accounted for in the recommended method, taking into consideration the least error objective function. Based on the simulation, THD of the current and the voltage have examined and decreased, which is evidence that UPCQ has improved the power quality. According to the findings, the approach that was suggested is efficient for preserving stability for power quality, and it delivers superior performance in comparison to the existing method.