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http://electrical-engineering-portal.com/few-things-that-capacitors-do-perfectly
Capacitors provide tremendous benefits to distribution system performance. Most noticeably, capacitors reduce
losses, free up capacity, and reduce voltage drop. Lets go a little bit into details.
Voltage drop //
Capacitors provide a voltage boost, which cancels part of the drop caused by system loads. Switched capacitors can
regulate voltage on a circuit.
If applied properly and controlled, capacitors can significantly improve the performance of distribution circuits. But if not
properly applied or controlled, the reactive power from capacitor banks can create losses and high voltages.
The greatest danger of overvoltages occurs under light load . Good planning helps ensure that capacitors are sited
properly.
More sophisticated controllers (like two-way radios with monitoring) reduce t he risk of improperly controlling
capacitors, compared to simple controllers (like a time clock).
Capacitors work their magic by storing energy. Capacitors are simple devices: two metal plates sandwiched
around an insulating dielectric. When charged to a given voltage, opposing charges fill the plates on either side of the
dielectric. The strong attraction of the charges across the very short distance separating them makes a tank of energy.
Capacitors oppose changes in voltage. It takes time to fill up the plates with charge, and once charged, it takes time to
discharge the voltage.
Circa 1963 vintage pole with a capacitor bank along with black porcelain insulators (photo credit: Astro Powerlines via Flickr)
On AC power systems, capacitors do not store their energy very long just one-half cycle. Each half cycle, a
capacitor charges up and then discharges its stored energy back into the system. The net real power transfer is zero.
Capacitors provide power just when reactive loads need it. Just when a motor with low power factor needs power
from the system, the capacitor is there to provide it. Then in the next half cycle, the motor releases its excess energy,
and the capacitor is there to absorb it.
Capacitors and reactive loads exchange this reactive power back and forth.
This benefits the system because that reactive power (and extra current) does not have to be transmitted from the
generators all the way through many transformers and many miles of lines; the capacitors can provide the reactive
power locally. This frees up the lines to carry real power, power that actually does work.
Elimination of penalties //
A high power factor eliminates penalty dollars imposed when operating with a low power factor. For many years,
most utilities demanded a minimum of 85% power factor as an average for each monthly billing.
Now many of these same utilities are demanding 95%or else pay a penalty!
The actual wording or formula in the utility rate contract might spell out the required power factor, or it might refer to
KVA billing, or it might refer to KW demand billing with power factor adjustment multipliers. Have your utility
representative explain the particular rate contract used in your monthly bill. This will insure you are taking the proper
steps to obtain maximum money savings by maintaining a proper power factor.
High-voltage capacitors for primary high-voltage lines (on photo: 115-kV Cap Bank; credit: ece.mtu.edu)
High-voltage capacitors for overhead distribution systems can be mounted on poles in banks of 300 to 3600 kvar
at nearly any primary voltage up to 34.5 kV, phase-to-phase. Pad-mounted capacitors for raising the power factor in
underground distribution systems are available in the same range of sizes and voltage ratings.
The increasing use of motor-driven appliances and building service equipment has increased overall power loads as
well as the inductive kvar on most power systems.
It is desirable to cancel them because:
Substation and transformer load capacity can be taxed to full thermal limits.
References //
Electric Power Distribution Equipment and Systems T.A. Short ( Get it from Amazon )
Handbook Of Electrical Design Details Neil Sclater, John E. Traister ( Get it from Amazon )