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Why capacitor bank is used?

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Capacitor banks are mainly placed in the substation used to improve and to lead the power factor
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Power factor improvement so to balance active and reactive power to safe guard the generation system.
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In industrial or factory used E.B Power supply must be maintained above 0.90 power factor is compulsory for avoid EB Penalty. So APFC ( automatic Power factor control ) panel is used to maintained balance the load and PF maintained.
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