Distribution generation is the future of electrical energy because the fuels (such as coal) used in conventional methods are decreasing day by day. The demand for electricity is increasing rapidly. Hence, consumption of conventional fuels is also increasing resulting in depletion of these resources and high carbon emissions. Also, the harmful impacts caused by these resources has shifted the focus of industries and researchers towards more eco-friendly methods i.e. renewable sources of energy. Integrating these renewables with existing system is the new trend. Various studies have been carried out discussing the merits and demerits of DG integration with the central grid. The process of adding distributed generators with the power system is quite challenging. The DG’s should be added such that it enhances the system performance and increases reliability. This paper discusses about the optimal placement of DG to reduce power losses in the network.