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to minimize the reactive power and flow of current and increase the power factor.
Power factor is the ratio of active power(Real power) consumed by the load to Apparant power flowing in the system. Apparant power is the vector sum of Active power and Reactve power. Reactive power in a system is consumed mainly by Induction motor, transmission lines, induction fittings, transformer wdgs etc. which consumes almost70% of industrial load. for a given Active power consumed(VIcos0), if power factor is low, the current drawn by the system will be more.Hence losses will be more and Electricity cost will be more. Here arises the significance of improving power factor, which can be mainly done in industry by either using a Synchronous condensor or Capacitor Banks. Since synchronous condensor is costly, in industry capacitor bank is preferred. Capacitor bank compensates the inductive load by reducing the angle between Voltage and Current phasor, hence improving powerfactor. We can use either shunt or series capacitor banks, where shunt(Parallel) is preferable due to its majority of advantages.
Capacitor banks are used for power factor improvement in industrial projects.