Firefly algorithm is proposed in this article for placement of Interline power flow controller (IPFC) to reduce power loss of a transmission line and cost estimation. The IPFC is one of the series FACTS devices. It can control active and reactive power of multiple transmission lines. Power loss reduction, improvement of efficiency of the transmission line and enhancement of voltage profile are major issues in the power transmission system. The average power loss in the system is taken as the objective function with various constraints and then cost is estimated. The code has been developed in MATLAB (Version 2019) and executed on personal computer. The proposed algorithms has been tested on IEEE 5 bus system and the results are presented. It is noticed that the proposed algorithm provides best results in terms of power loss and installation cost with less computational time.

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