The invention discloses an NSGA-III-based UPFC (unified power flow controller) location and capacity multi-target configuration method. According to the method, with the NSGA-III adopted as a framework, the installation position and capacity of a UPFC are optimized; and a non-dominated solution set is constructed through adopting a reference point-based non-dominated sorting method. Since reference points are uniformly distributed on a hypercube, and niche technology is adopted, and the diversity of populations can be maintained, and the loss of the Pareto optimal solution can be avoided, and a uniform Pareto frontier can be obtained, and problems in UPFC location and capacity multi-target configuration can be well solved.