The demand for active power is expressed in KiloWatts (kW) or Mega Watts (MW). This power should be supplied from electrical generating station. All the arrangements in electrical pomes system are done to meet up this basic requirement. Although in alternating power system, reactive power always comes in to picture. This reactive power is expressed in Kilo VAR or Mega VAR.
The demand for this reactive power is mainly originated from the inductive load connected to the system. These inductive loads are generally electromagnetic circuits of electric motors, electrical transformers, the inductance of transmission and distribution networks, induction furnaces, fluorescent lightings, etc. This reactive power should be properly compensated otherwise, the ratio of actual power consumed by the load, to the total power i.e. vector sum of active and reactive power, of the system becomes quite less.
This ratio is alternatively known as the electrical power factor, and a lower ratio indicates a poor power factor of the system. If the power factor of the system is poor, the ampere burden of the transmission, distribution network, transformers, alternators and other types of equipment connected to the system, becomes high for required active power. And hence reactive power compensation becomes so important. This is commonly done by a capacitor bank.
Let’s explain in detail: we know that active power is expressed = vIcosθ
Where, cosθ is the power factor of the system. Hence, if this power factor has got less valve, the corresponding current (I) increases for same active power P.
https://www.electrical4u.com/capacitor-bank-reactive-power-compensation/
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