This paper presents an “offline-online” strategy for optimal allocation and sizing of Distributed Generation. In traditional optimization approaches, each function evaluation requires the solution of a power flow problem, which makes global optimality a computationally challenging goal. In the proposed strategy the power flow solver is invoked only once and a parametric solution is constructed with a monolithic solver. Despite the fact that the parametrized power flow equations result in a high-dimensional problem, the proposed algorithm is specifically designed to circumvent the curse of dimensionality. This is achieved through the application of Model Reduction, in particular the Proper Generalized Decomposition combined with a nonlinear solver. Numerical examples are carried out for showing the validity of the proposed method.