The proposed study presents a novel methodology aimed at mitigating losses in distributed generation (DG) systems within distributed networks. This methodology involves the integration and implementation of DG units that utilize non-conventional, sustainable resources, potentially enhancing traditional DG systems. When DG units are located near the point of consumption, they create favorable conditions for voltage support, reduction in energy losses, and lower emissions. The strategic placement of DG units, in terms of both size and location within an existing generation network, is critical for the construction, execution, and operational planning of real-time distribution networks. This optimal positioning is key to maximizing voltage stability and minimizing power loss. The study proposes an innovative strategy to decrease real power losses and improve voltage profiles, which includes optimizing substation capacity by introducing DG units.