Functions of a Capacitor Bank
A capacitor bank is a grouping of multiple capacitors used to improve the efficiency and stability of electrical power transmission and distribution systems. Here’s an overview of its primary functions and history in power systems:
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Power Factor Correction: Capacitor banks counteract inductive loads by providing reactive power, which helps improve the power factor. This results in reduced demand charges from utilities, as a better power factor reduces apparent power.
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Voltage Stabilization: By releasing stored electrical energy, capacitor banks help maintain stable voltage levels, especially during high-demand periods or in areas with long transmission distances. This is particularly important to prevent voltage drops that can damage equipment or disrupt service.
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Reduction of Transmission Losses: Capacitor banks minimize power losses over long distances by reducing the reactive power, which otherwise increases current flow and results in resistive losses in transmission lines.
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Increased System Capacity: By offsetting reactive power, capacitor banks enable existing transmission infrastructure to handle more active power (real power), allowing for increased system capacity without the need for infrastructure upgrades.

History and Usage in Power Systems
Capacitor banks began seeing widespread use in power systems around the mid-20th century as electricity demand increased and the need for efficient long-distance transmission grew. With the rise of industrial loads and complex distribution networks, utilities adopted capacitor banks to maintain power quality and reduce the strain on transmission and distribution equipment. Today, capacitor banks are a standard component in substations and are often installed at strategic points in transmission and distribution networks to support both urban and rural grids.