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Today, different newly developed methods and algorithm are provided that enable power system operators to have more suitable controls over systems' parameters. Even though these new methods have provided massive contributions over control of such parameters, but still having a full proper control over profile of voltages in distribution systems needs more developed advances. To meet these necessities, applications of DGs has been introduced. Although implementation of distribution generation units can benefit the system on aspects of better voltage profiles, but it may result in more complex control necessities on connected power system. In this paper, power flow on a radial 12 bus distribution system is done and results are analyzed based on different reactive compensation algorithms provided. Clearly the final goal is providing improvements in power loss reduction and enhancing the levels of voltage states on the system and this is unachievable unless a proper reactive compensation is added to active power provided to make a complete DG unit to enhance power system stability parameters. Simulation results show that if a proper level and type of reactive compensation is provided for distribution section of power systems connected to DG sources, voltage profiles can be improved and consequently reduction in power losses can be expected.