A computationally efficient means of determining the location of a static VAR compensator, to maximise its influence over damping of electromechanical oscillations, is presented. The location criterion, which is independent of the ultimate control scheme to be used, is applied to two-machine systems. An extension of the criterion to multi-machine systems, using modal analysis, is demonstrated on a simple three-machine system. Confirmation of the criterion is supplied by transient stability runs on a simple two-machine problem.