This paper proposes a new FACTS device, i.e., Unified Power Flow Controller (UPFC) to relieve power congestion on power grid network. A simple model of a three phase AC–network of 500/230kV, 5-bus network with two transformers and two power generation plants (1000MW, 500MW) is designed. UPFC is designed with IGBT converters connected in shunt- series and both interconnected with DC bus and connected to AC side with transformer and coupling reactors. A contingency case is considered such that two transformers are considered instead of three transformers. The power flow of an UPFC installed at Bus-3 in 5-bus system is analyzed to show how the congestion of power on the grid is relieved through it. A bypass circuit breaker is installed at Bus -3 in the circuit to show the natural power flow without UPFC and power flow after installation of UPFC. The topology of series converter build in UPFC can introduce maximum of 10% of line-ground voltage in series. The simulation network of the 5-bus transmission network with UPFC connected at Bus-3 is designed with MATLAB/SIMULATION Software to estimate the power flow with UPFC connected.