Why are power compensation capacitors installed in the distribution room?

The core purpose of installing power compensation capacitors in the distribution room is to **improve the 

power factor of the power system** and optimize the power quality and operation efficiency. The following

 are the specific reasons and working principles:


### I. Why is it necessary to improve the power factor?

1. **Definition of power factor**

The power factor ($\cos\phi$) is the ratio of **active power (P)** to **apparent power (S)**:

\[

\cos\phi = \frac{P}{S} = \frac{P}{\sqrt{P^2 + Q^2}}

\]

Among them, **reactive power (Q)** is the energy required for inductive loads (such as motors and 

transformers) to establish a magnetic field. It does not directly do work but affects the magnitude of the current.


### II. Hazards of a low power factor

1. **Increase in line losses**

The current formula is: $I = \frac{P}{\sqrt{3}U\cos\phi}$. The lower the $\cos\phi$, the larger the current, 

and the line losses ($I^2R$) increase proportionally.


2. **Waste of equipment capacity**

The capacity of transformers and generators is determined by the apparent power (S). If $\cos\phi = 0.7$, 

a 1000kVA device can only provide 700kW of active power, and 300kVA of capacity is occupied by reactive power.


3. **Decrease in voltage stability**

Insufficient reactive power will lead to an increase in the line voltage drop, affecting the power supply

 quality of end devices.


4. **Electricity bill penalty**

In China, **power factor adjustment electricity bills** are implemented. When $\cos\phi < 0.9$, additional 

electricity bills will be charged (such as for industrial users).


### III. Working principle of power compensation capacitors

1. **Capacitive reactive power compensates for inductive reactive power**

   - Inductive loads (motors) consume **inductive reactive power ($Q_L$)**, and the current lags behind the

 voltage by 90°.

   - Capacitors provide **capacitive reactive power ($Q_C$)**, and the current leads the voltage by 90°.

   - After the two are connected in parallel, **$Q_L - Q_C$** reduces the total reactive power, and the power 

factor approaches 1 (as shown in the figure below).

2. **Calculation formula**

The reactive power capacity to be compensated:

\[

Q_C = P \left( \tan\phi_1 - \tan\phi_2 \right)

\]

Among them, $\phi_1$ is the phase angle before compensation, and $\phi_2$ is the phase angle after compensation.


### IV. Actual benefits of compensation capacitors

Benefit dimension Specific performance
Reduce lossesThe current decreases, and the line losses are reduced by about \(1 - \cos^2\phi\) times (for example, when \(\cos\phi\) changes from 0.7 to 0.9, the losses are reduced by 39%)
Release capacityUnder the same active power, the apparent power decreases, and the transformer can carry more loads
Stabilize voltageReduce the voltage drop caused by the line reactance and improve the voltage quality at the end
Save electricity billsAvoid power factor penalties, and some regions offer rewards to users with a high power factor

### V. Configuration methods of compensation capacitors in the distribution room

1. **Centralized compensation**

Capacitor banks are centrally installed on the low-voltage bus side of the distribution room, which is suitable

 for scenarios with concentrated loads (such as factories).


2. **Group compensation**

Compensation is carried out in groups according to the distribution branches to balance the local reactive 

power demand.


3. **On-site compensation**

It is directly connected in parallel beside large equipment (such as motors), which is suitable for high-voltage

 and long-distance equipment.


### Summary

Installing compensation capacitors in the distribution room is to **offset inductive reactive power with 

capacitive reactive power**, thereby:

✅ Improving the power factor, reducing line losses and equipment capacity requirements;

✅ Improving voltage stability and avoiding electricity bill penalties;

✅ Being an important measure for the energy conservation and economic operation of the power system.