This paper considers the implementation of an annealing technique for dynamic power reduction in FPGAs. The proposed method comprises a power-aware objective function for placement and is implemented in a commercial tool. In particular, a capacitance model based on multi-dimensional nonlinear regression is described, as well as a new capacitance model for global nets. The importance and advantages of these models are highlighted in terms of the overall attainable reduction in power in a real, commerciallyavailable architecture and tool flow. The results are quantified across a range of industrial benchmarks targeting the Actel R IGLOO TM FPGA architecture. Power measurements show that, across a suite of 120 industrial designs, the technique described in this paper reduces dynamic power by 13% on average, with only a 1% degradation in timing performance.