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Controllable network VAr compensators are required in high voltage transmission networks for system loss reduction and voltage maintenance during normal and emergency operation. Long term planning of network compensators is generally based on contingencies which cause the system voltage to move out of the desired operational range. A non-linear analysis based on multi-contingency states is presented for optimum network VAr planning. The proposed approach is critically evaluated and compared with the existing techniques and is illustrated by an application to a high voltage model system.