In this paper a variable’s involved in assessing the quality of a distributed generation system are reviewed, aiming to minimize the electric power losses (unused power consumption) and optimize the voltage profile. To provide this assessment, several experiments have been made to the IEEE 34-bus test case and various actual test cases with the respect of multiple DG units. The possibility and effectiveness of the proposed algorithm for optimal placement and sizing of DG in distribution systems have been verified. Finally, four algorithms were trailed: simulated annealing (SA), hybrid genetic algorithm (HGA), genetic algorithm (GA) and variable neighbourhood search. The HGA algorithm was found to produce the best solution at a cost of longer processing time.