
So how do you solve this? Well, first you have to do an energy audit. Most people with experience can give you a solution by reading your electrical bill, but it is preferable to do an energy audit and measure your power factor for a week along with other power quality elements like harmonics to give you a good and permanent solution. If your power factor stays fixed (it does not oscillate during the day) during this analysis, you can propose a fixed capacitor bank at the main. If it oscillates during the day, you have to install an automatic capacitor bank. This ensures that you have the right amount of reactive power as needed in your process, and also reduces the risk of high voltages in the system, caused by a large amount of reactive power being injected in to the system.
There is another scenario that you have to be aware of in this analysis and that is the presence of harmonics in your system. I am going to go in some detail on this issue in a further post, but in broader terms harmonics can damage your capacitor bank if it enters in resonance with your capacitors. This can cause your capacitors to explode and can be a life threatening hazard. There are various solutions to deal with harmonics in your system; one of them is to install an active harmonic filter. This will help you cancel out the harmonics on your system and help you not to worry about having problems with your capacitor bank.
Eaton Electrical has published a very good guide that explains in very simple terms these issues. If you are interested in reading it click this link.
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