The scale of the power grid is expanding day by day, and the short-circuit short circuit level of the power grid is continuously rising. Installing the current limiter is an economically feasible current limiting measure. Under the background, this paper proposes a new fault current limiter location optimization and capacity planning method. Based on the distribution characteristics of the grid nodes and branches, the vector of short-circuit current level and breaking margin and the vector of the cost and power loss of the whole network are defined. By studying the normative space characteristics of the defined vectors, a class of hyperspace norms with specific physical meanings is defined as the measure of vector distance, the cost and gain indicators of the fault-limiting device configuration scheme of the whole network are derived, and the objective function of the current limiter location and capacity configuration is constructed. Considering the safe operation constraint of power grid, the paper uses a genetic algorithm with variable chromosome length to solve the problem. The example analysis is based on the IEEE 14 bus standard test system to verify the effectiveness and practicability of the proposed method.