Power Factor Correction is a cost-effective method to meet the reactive demand of a plant or distribution system. Power Factor Correction may be warranted simply from the benefits it provides in voltage increase and reduced loading in utility supplier charges, transformers, cables and generators.
The technical and economic value of Power Factor Correction is verified through an analysis of the plant electrical system and loads. Also, planning for present and future kVAR needs may require additional studies. If harmonics are present, the selection of capacitors will be more complex and the location more critical. Frequent switching of capacitors can cause transient over-voltages, and isolated motors on capacitors may have to be examined for self-excitation