Increase in power consumption can cause a serious stability problem of an electric power system without construction of new power plants or transmission lines. Also, it can generate large power loss of the system. In costly and environmentally effective manner to avoid constructing the new infrastructures such as power plants and transmission lines, etc, the distributed generation(DG) has paid great attentions so far as a solution for the above problem. Selection of optimal location and size of the DG is the necessary process to maintain the stability and reliability of existing system effectively. However, the systematic and cardinal rule for this issue is still open question. In this paper, the method to determine optimal location of the DG is proposed by considering power loss when the DG is connected to an electric power grid. Also, optimal size of not only the corresponding single DG but also the multi-DGs is determined with the proposed systematic approach. The IEEE benchmark 30-bus test system is analyzed to evaluate the feasibility and effectiveness of the proposed method.