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This paper presents a new approach for identification of optimal locations of STATCOM and SVC. The power system operates in stability boundary and system probably loses its stability by occurring disturbance, so considering contingency outage and recognition of voltage instability in allocation of shunt FACTS devices has importance. This paper by considering of power system contingencies based on the effects of them on static voltage stability specifies optimal location for installation SVC and STATCOM. The method for analyze voltage stability is continuation power flow and simulated case studies conducted on Kouzestan power networks in Iran based on the proposed techniques.