The present day power network system is being operated under highly stressed operating condition and is highly complex due to increasing demand in electricity for various sectors such as industrial applications, commercial use and domestic needs. As the load increases, the reactive power also increases abruptly and hence the system becomes unstable which results in poor voltage profile and more power losses of a transmission system. The main goal of this study is to establish a novel method of evaluating power system conditions by installing FACTS (STATCOM, SSSC, and UPFC) devices, which will enhance the voltage profile and minimise network losses. FACTS devices with suitable placement will meet the required reactive power demand and hence active power transfer increases up to their thermal limits so as to minimize the losses and improve the voltage profile of the system. In this paper the effective placement of FACTS devices using HGAPSO technique gives better results in terms of minimization of power losses and enhancement of voltage stability. The proposed technique is implemented in a MATLAB environment and tested for IEEE 14 test system.