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Particle swarm optimization (PSO) algorithm is used for planning the static VAr compensator (SVC) in a large-scale power system. The primary function of an SVC is to improve transmission system voltage, thereby enhancing the maximum power transfer limit. To enhance voltage stability, the planning problem is formulated as a multiobjective optimization problem for maximizing fuzzy performance indices. The multi-objective VAr planning problem in a large-scale power system is solved by the fuzzy PSO with very encouraging results, and the results are compared with those obtained by the genetic algorithm (GA)