This paper proposes a combination of the Thyristor Controlled Series Capacitor (TCSC) and Static Var Compensator (SVC) installation for enhancing the damping performance of a power system. The developed scheme employs a damping controller which coordinates measurement signals with control signals to control the TCSC and SVC. The coordinated control method is based on the application of projective controls. Controller performance over a range of operating conditions is investigated through simulation studies on a single-machine infinite-bus power system. The linear analysis and nonlinear simulation results show that the proposed controller can significantly improve the damping performance of the power system and hence, increase its power transfer capabilities. In this paper, a current injection model of TCSC is developed and incorporated in the transmission system model. By using equivalent injected currents at terminal buses to simulate a TCSC no modification of the bus admittance matrix is required at each iteration.