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as you know the power triangle s , p and q the p for active power and q for reactive power and s what i actually take from the utility the reactive power has no use it can be considered as a more load and the most responsible for the reactive power is the L and C so by adding capacitor the triangle will be better as the power angle will increase to overall enhance the total power absorbed (S)
Capacitor bank feeding reactive current (Ic) to particular circuit load as required to manage good power factor as per set value. Ic leads the system voltage by90 degree.As capacitor bank feeding required reactive power to load (Instead of transmission line),system PF will get increase.
Capaacitor bank does the work by injecting the reactive energy into the syem,so that angle in between the current and voltage is reduced thus improves the power factor. Reactive energy is nothing but non productive energy so power system gets affected because of this injection is also negligible.
