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Electric power has remained a basic essential for the advancement of any nation's economy. Increasing human exercises because of innovative advancement combined with populace development has made the interest for power dramatically increasing continuously, subsequently widening the gap between power generated and the demand by the consumers. This work provides sensitivity based method for the allocation of a distributed generation in a distribution network aimed at improving the voltage profile and reduce power loss in the quest to narrow the gap between power generated and that demanded by the consumers. Using the Loss sensitivity method, a DG of 153kW was allocated to bus 5 that sees a power reduction of 46% with voltage profile improved within constraints. Voltage sensitivity index was calculated at all nodes. Bus 17 was found to have the minimum VSI. In this case DG sizes were taken in step size of 17.5kW starting from 30 kW till 170 kW at different power factors of 1.0, 0.9, 0.85, and 0.8. The DG sizes were tested at the selected power for various DG sizes. 135kW DG at unity power factor was installed. After comparing the two methods it can be concluded that loss reduction in loss sensitivity method is more and it is better in terms of selecting the optimal location for the placement of DG. For the purpose of sizing the voltage sensitivity analysis index method is a better option.

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