This paper describes a technique for selection of buses in a sub transmission system for location of distributed generation (DG) and determination of their optimum capacities by minimizing transmission losses. The buses have been selected based on incremental voltage (dV/dP) sensitivities. Line flow constraints have been accounted. Type-3 DG i.e. wind turbine along with induction generator has been considered for the study. Differential evolution (DE) has been used to evaluate the optimum DG capacity and results have been compared with those obtained using bare bones particle swarm optimization (BBPSO) and multi-membered non-recombinative (μ+λ) evolution strategy (MMNRES). The developed algorithms have been implemented on standard 6-bus and 30-bus test systems.