Distribution Company (DISCO) uses some price-based policies to maximize the profit of Distributed
Generation (DG) owners and minimize the power loss of the network. Meanwhile, loss of the network is
minimized by Distribution Network Reconfiguration (DNR). In this paper, a hybrid market-based DNR
methodology is proposed to concurrently obtain both the optimal configuration of the network, and
Locational Marginal Prices (LMPs) at DG connected busses. Firework Algorithm (FWA) is coupled with an
Iterative Game-Based algorithm (IGBA) to procure the optimal configuration of the network with the
objective of power loss minimization. In the hybrid methodology, through the search process of FWA in
finding the optimal configuration, the IGBA is run for each candidate configuration. Using the IGBA, the
LMPs of DG units is calculated based on their share of loss reduction which is determined by the game
theory. Also, in the FW algorithm, improper selection of coefficients leads to inefficiency of the algorithm.
Therefore, a self-adaptive framework is proposed to specify the value of coefficients during the evolution
of algorithm. The effectiveness of the proposed methodology is evaluated using a practical system.