Abstract: The deregulated power sectors suffer from congestion management problems. The congestion occurs when the generation and consumption of electric power causes the transmission system to operate beyond transfer limits. This paper deals with congestion on deregulated energy market and methods of managing its effects. The use of TCSC is also proposed to enhance the transfer capability which is needed to meet the rapidly changing demand of competitive markets. Power system load growth is increasing at a faster rate as compared to the increase in transmission capability. This has forced the system to move large amount of power over transmission system and created challenges associated with it. In the open access system where anybody can buy or sell energy there is a heavy transmission utilization in certain areas which was not planned initially. This has increased the need of improvements in the transfer capability of the system while maintaining the system security and reliability. This paper proposes an innovative technique for location of FACTS device using complex valued neural network.