Shunt capacitor are used mainly for Power factor correction. The optimization and improvement of power factor correction (as close to PF=1) has many benefits. Benefits such as transformer line losses, voltage profile improvement, reduction of maximum demand, and improved power quality.
In distribution systems, as load gets further from the source (substation), voltage at the load end typically goes down due to the lack of reactive power. Capacitor banks can be installed to inject VARS thereby supporting the voltage at the end of the line.
Series capacitors are connected in series in the circuit - thereby, carries the full line current. The voltage across the shunt capacitor remains constant, and the
drop across the series capacitor changes with load.
Since the series capictor reacts to load, makes it valuable in transmission and distribution line compensation. Think of the series capacitor as a negative reactance with a transmission line.
The voltage rise across the capacitor is a function of circuit current and acts like a voltage regulator.
The negative voltage drop across the series capacitor opposes the voltage drop due to the inductive reactance. Such effects are very valuable in radial feeders to reduce voltage drop and flicker effects. In the tie lines, the power transfer capability is significantly increased if the series compensation is applied.
Addition of significant shunt capacitors at the motor terminal may lead to overvoltages due to selfexcitation
when the motors are switched off with capacitors.
These shunt capacitor banks are switched in and out as needed. The switching operations include energizing, de-energizing, fault clearing, backup fault clearing, and reclosing. Sometimes a restrike occurs due to excessive voltage across the circuit breaker blades. Further, in the capacitor banks there may be bus fault conditions
responsible for significant outrush current.
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