Smart Transformer (ST) is an effective solution for improving the performance of electric grid with significant renewable energy integration. This paper proposes a methodology for optimal placement of ST low voltage (LV) converter in meshed hybrid distribution network. The ST LV converter is placed at the different buses to find out its optimal location, while ensuring that the energy drawn from the grid is minimized and line voltages are maintained within the grid codes. Moreover, a method of determining power flow solution is proposed to generate the active and reactive power references for distributed generation converters. The proposed work is tested on the considered system for various locations of ST LV converter using MATLAB simulations.