Power system operations can be optimized using power electronics based FACTS devices. The location of these devices at appropriate transmission line plays a major role in their performance. In this paper, two bio-inspired algorithms are used to optimally locate two FACTS devices: UPFC and STATCOM, so as to reduce the voltage collapse and real power losses. Particle swarm optimization and BAT algorithms are chosen as their behaviour is similar. VCPI index is used as a metric to calculate the

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... age collapse scenario of the power system. The algorithm is tested on two benchmark power systems: IEEE 118 and the Indian UPSEB 75 bus system. Performance metrics are compared with the system without FACTS devices. Application of PSO and BAT algorithms to optimally locate the FACTS devices reduces the VCPI index and real power losses in the system.