Distributed devices in smart grid systems are decentralized and connected to the power grid. The connection made through different types of equipment transmits. This produces the numerous energy losses, when power flows from one bus to another bus. The most efficient approaches to reduce energy losses is to integrate the renewable energy resources in Distributed Generation’s (DG’s). The uncertainty of DG may cause instability issues. The major issue includes congestion in the power grid due to the sudden power consumption by the customers, which affects the efficient energy delivery. Energy management with DG regulation is one of the most efficient solutions to solve these instability issues. In the considered power system with DG’s and consumers, the Locational Marginal Pricing (LMP) based unified Energy Management System (uEMS) model is considered. This model increases the profit benefits for DG’s and increases the stability of Distributed Energy System (DES). In this paper, the Bacterial Foraging Optimization (BFO) is employed to reduce losses i.e. based on Loss Reduction Allocation (LRA) method. Using LRA method the energy loss reduction is calculated and this model accurately rewards DG contribution and offers a good competitive market. Moreover, the entire DG’s profit is increase by the BFO technique. The IEEE 37 bus feeder system is to be considered to validate the proposed uEMS model to increase the DG system stability. Furthermore, this implementation gives the idea of formulating efficient energy management system of future Indian scenario.