Congestion management is one of the most challenging aspects in the recently deregulated electricity markets. FACTS devices have been shown to be an efficient alternative to control the flow of power in lines, resulting in increased loadability, lower system loss and a reduced cost of production. In this paper, the application of a static series synchronous compensator (SSSC) for the purpose of congestion management of power systems has been studied. A sensitivity-based analysis method is utilized for effective determination of the SSSC location in an electricity market. The method is topology based and it is independent of the system operation point. A power injection p-model is developed for the SSSC in this study. Numerical results based on the modified IEEE 14 bus system with/without the SSSC demonstrate the feasibility as well as the effectiveness of the SSSC for congestion management in a network. The results obtained when using the SSSC to improve system transfer capability and congestion management is encouraging.