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In electric power systems, it will started from the generation phase until the distribution phase through transmission lines must take place well. The purpose of study is to analyze the implementation in optimizing the power flow and improving stability in Z Power System. Therefore, it is necessary to have sufficient electricity distribution so that the electricity sent can be as efficient as possible. In the Z electric power system, there are many problems in electric power transmission, namely loading on uneven channels and the threat of extinguishing in the event of a disturbance. Uneven load is caused by differences in impedance on the channel. Blackouts occur because the channel on the Z is a generator evacuation route where the area is crucial if a disturbance occurs. Therefore, a tool is needed to prevent it. One solution to this problem is to use a power electronics device called UPFC. The simulation results show an even distribution on the all transmission lines connected to substation of Generators will be decrease up more than 5% of the normal loading. In addition, the UPFC can also improve stability by compensating for the active power and reactive power needed by the system.