Static Var Compensator (SVC) is a popular FACTS device for providing reactive power support in power systems and its placement representing the location and size has significant influence on network loss, while keeping the voltage magnitudes within the acceptable range. This paper presents a Firefly algorithm based optimization strategy for placement of SVC in power systems with a view of minimizing the transmission loss besides keeping the voltage magnitude within the acceptable range. The method uses a self-adaptive scheme for tuning the parameters in the Firefly algorithm. The strategy is tested on three IEEE test systems and their results are presented to demonstrate its effectiveness.