- By installing capacitors line current taken for a given power is reduced and voltage dip in feeders, transformers etc is also reduced.
- Further the reactive power (lagging) needed by the loads is supplied by the capacitors and hence the source or power plants are relieved to that extent.
- Hence the substations as well as generating stations can supply an additional power without increase in the current.
- The generation plant capacity together with transmission and distribution substation and network capacity is reduced and here increased to that extent.
- Reduced energy losses or power losses
- Reduced voltage drop and improved voltage regulation.
- Increase in revenue due to voltage improvement reduced losses and hence supply of more energy.
- The total benefits due to capacitors installation can be put as total financial benefits obtain due to
- Demand reduction
- Energy savings and revenue increase due to release of additional capacity.
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