Shunt FACTS devices provide the possibility to control voltages and therefore to improve the security of the system. In order to use this possibility, the optimal location and the set values of the FACTS controllers have to be selected correctly. The singular analysis of the power system Jacobian matrix are applied to identify the optimal location of shunt FACTS devices in large power systems. Furthermore the application of Optimal Power Flow control is a possible method for choosing set values. In this paper a sensitivity index for the detection of sensor nodes is defined. Sensitivity analysis is used
to determine the area on which the FACTS device has significant influence. And then only this limited area is included in the Optimal Power Flow control, because it is very difficult to include the entire system into the optimization process. Matlab code is written to find the optimal location of Shunt Facts device i.e., SVC. Furthermore the objective function of Optimal Power Flow control is analyzed. This function consists of three components. A certain type of FACTS is not able to influence all these components.
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