Energy conservation and efficiency are necessary actions in electrical power system. Therefore, the wasted energy that is dissipated in the transmission network needs to be minimized. The power loss can be reduced by using many techniques, including the use of reactive compensators. In this paper, intelligent algorithms are examined to find the best site and size of reactive compensators so as to improve the performance, power quality and economics of radial electrical networks. A Matlab program has been developed to find the status of a radial distribution network in terms of power flow, losses, and bus voltages. Two artificial intelligence (AI) algorithms namely genetic algorithm (GA) and particle swarm optimization (PSO) have been developed to cater for the optimal position and amount of reactive power compensation. The programmed approaches were tested in reference network of IEEE 15-bus system and then implemented on the Syrian network, specifically Al-Mayadeen distribution network comprising 64-bus. Transient Electrolyzer Program (ETAP) was used to simulate the different power systems. The study showed that the GA is superior and outperforms PSO in reducing total power loss hence the cost and also improving voltage profile. Overall, the two examined techniques can be used in any radial electrical network.