Selection of Reactive Load to Correct Power Factor, Cost-Effectiveness

It is said that the progress of a country depends on the electricity generation capacity of that country. At present, many countries use non-renewable sources, which are dangerous for green energy. So, it is necessary to use generated power at the highest efficiency. It is observed that the industrial/agricultural load is almost of an inductive type. It is always the case that, due to inductive load, the power factor decreases. So, the generated power is distributed in two sections: active power and reactive power. Reactive power is always a loss of power. Due to reactive power, there may occur a large gap in the demand–supply of electricity. That is why? Capacitor bank is used to increase power distribution efficiency by converting reactive power into active power. It is also important to study the payback period needed to recover the investment made in a capacitor bank. The paper presented highlights all the above points. Society is changing today. Everyone knows the importance of electricity. Therefore, it is the responsibility of each and every stakeholder to take care of each transformer. If every type of transformer were to look at the power factor and apply a compensating load in that way, then stakeholders would be truly intelligent consumers.