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Electrical power consumption is increasing day by day, complicating the operation of distribution systems. Distributed Energy Resource (DER) integration in distribution system is one of the options which give benefits like loss minimization, peak shaving, over load relieving and improved reliability. This paper presents an algorithm for optimal placement and size of the DER considering system loss minimization and voltage profile improvement as objective functions. This work is tested on IEEE 15, 33, 69 and 85 bus distribution systems. For all cases studied, a new heuristic optimization technique Shuffled Frog Leaping Algorithm (SFLA) is applied and current injection based distribution load flow method is employed. Further the results are compared with those results obtained by Particle swarm optimization (PSO) method and found to be encouraging.