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This paper presents a method to seek the optimal location of several static Var compensators (SVCs) in a power system based on their primary function. Taking advantages of the flexible ac transmission system (FACTS) devices depends largely on how these devices are placed in the power system, namely, on their location and size. In addition to their primary function, the supplementary damping control action can be also added, and how to utilize their control capabilities effectively as stabilizing aids is becoming very important. In this paper, power system stability is used as an index for optimal allocation of the controllers. First, several SVCs are placed optimally based on modal analysis and genetic algorithm in a power system. After placing the SVCs based on their primary functions, the most appropriate input signal for supplementary controller is also selected. The frequency response characteristics of the …