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Loss minimization in power system is an important consideration research issue. Transmission losses in a power system can be minimized by means of reactive power compensation. Installing static Var compensation (SVC) in a power system has known to be able to improve voltage level in the system and hence minimizing the system losses. This paper presents a technique to determine the location of the SVC in order to minimize loss in the system. The performance of this technique is tested using 14 buses IEEE reliability test system. A load flow programmed written in MATLAB by using artificial immune system (AIS) technique was used to compute power flow. The test result shows that the location and sizing of the SVC identified by the proposed technique has been able to improve the voltage level of the system and also minimize the losses.