This paper presents a novel optimization algorithm for the multi-area multi-fuel economic-emission dispatch problem and total power loss objective. The proposed method uses the uniform distribution to determine the control parameters and employs a two-stage initialization process. This enables various objectives to be optimized under practical constraints and device limits. We formulate a realistic generation cost that includes the cost of reactive power generation, shunt power injections, and total power losses, along with the conventional active power generation cost. A novel objective based on the concept of multi-fuel emissions makes the problem more realistic, and a generalized unified power flow controller (GUPFC) is considered. A detailed power injection model is developed for a GUPFC with two series converters, including switching losses of converters. A nondominated sorting methodology and particle swarm optimization algorithm are then used to solve the multi-objective problem on the standard IEEE-30 bus and real-time Indian-124 bus test systems.Keywords GUPFC power injection model · Multi-fuel active power cost · Multi-fuel reactive power cost · Multi-fuel emissions · GUPFC installation cost · NSUDTPSO