Proper placement of Static VAR compensator (SVC) and Thyristor Controlled Series compensator (TCSC) reduces transmission losses, increases the available capacity, and improves the voltage profile. This paper presents an optimal placement of SVC and TCSC to determine SVC and TCSC locations and control parameters for minimization of transmission loss. Optimal location method utilizes the sensitivity of total real power transmission loss with respect to the control parameters of devices and multiply with new equation. The new equation of SVC is sum of reactive power flow that has relationship with bus and the new equation of TCSC is sum of real power loss that has relationship with transmission line. The method of optimal control parameters utilizes the interior point method for the minimizing real power loss. The results have been obtained on IEEE 14 bus, IEEE 30 bus, and IEEE 57 bus test system. Test result shows that both SVC and TCSC can determine optimal placement.

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