Optimal reactive power dispatch (ORPD) is a complex and non-linear problem, and is one of the sub-problems of optimal power flow (OPF) in a power system. ORPD is formulated as a single-objective problem to minimize the active power loss in a transmission system. In this work, power from distributed generation (DG) is integrated into a conventional power system and the ORPD problem is solved to minimize transmission line power loss. It proves that the application of DG not only contributes to power loss minimization and improvement of system stability but also reduces energy consumption from the conventional sources. A recently proposed meta-heuristic algorithm known as the JAYA algorithm is applied to the standard IEEE 14, 30, 57 and 118 bus systems to solve the newly developed ORPD problem with the incorporation of DG. The simulation results prove the superiority of the JAYA algorithm over others. The respective optimal values of DG power that should be injected into the four IEEE test systems to obtain the minimum transmission line power losses are also provided.