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In this paper a method for optimal placement of Static Var Compensator (SVC) to maximize power system loadability is presented. The method is based on mixed integer linear programming (MILP) and line flow based equations are used in the formulation. This proposed method has the ability to not only determine the location and settings of SVCs, but to minimize the required compensation as well. The method is tested on the IEEE 9 bus system as well as a 30 bus test system and successfully determines the number of devices, along with their locations and device settings. As part of ongoing investigations the authors are aiming to verify this proposed method with a realistic large scale Australian HV electricity transmission network.