Reactive Power Compensation Capacitor: A Smart Solution to Reduce Costs and Increase Efficiency

Have you ever encountered phrases like "reactive power penalty" or "low power factor" on the electricity bill for your industrial or commercial unit? These phrases might seem vague at first, but they actually point to one of the most important challenges in electrical systems: reactive power.

What is Reactive Power and Why Should We Compensate for It?

In an electrical system, electricity is composed of two types of power:

  • Active Power: This is the power that does useful work. For example, it makes a motor run or lights up a lamp. Its unit is the Watt.

  • Reactive Power: This power is necessary to create magnetic and electric fields in inductive and capacitive equipment (such as motors, transformers, and chokes). This power does not perform useful work, but its presence is essential for the operation of this equipment. Its unit is the VAR (Volt-Ampere Reactive).


Imagine you are carrying a glass of a beverage. The beverage inside the glass is the active power that you actually want to use. The foam on top of the beverage is the reactive power. This foam takes up part of the glass and doesn't allow you to carry more beverage, but it has no value in itself.

The presence of reactive power is not a problem in itself, but when its amount exceeds the permissible limit, it causes more current to be drawn from the power grid. This extra current leads to increased losses in cables and transformers, voltage drop, and ultimately, heavy penalties on the electricity bill. For this reason, compensating for this excess power and reducing it is one of the most important measures for optimizing energy consumption.

How Do Compensation Capacitors Work?

The main task of compensation capacitors is to produce capacitive reactive power. In most industries, due to the presence of motors and transformers, inductive reactive power is consumed. Capacitors, by producing capacitive reactive power, create the exact opposite of inductive reactive power, and the two cancel each other out.

This neutralization reduces the need to draw reactive power from the power grid, and as a result, the consumed current decreases. This reduction in current has several benefits:

  • Reduced Electricity Costs: The most important advantage is the elimination or reduction of reactive power penalties, which leads to a decrease in the electricity bill.

  • Increased Grid Capacity: By reducing the current, the capacity of cables and transformers is freed up, making it possible to connect new loads.

  • Improved Power Quality: Reduced voltage drop and stability of the power grid increase the useful life of the equipment.

  • Increased Efficiency: Energy losses in the cables are reduced, and the overall efficiency of the system improves.


Types of Compensation Capacitors

Compensation capacitors can be divided into two main categories based on their operating voltage:

  • Low-Voltage Capacitors: These capacitors are used at low voltages (up to 1000 volts) and are typically installed in industrial and commercial electrical panels. These types of capacitors are produced in single-phase or three-phase configurations and in various capacities (from a few kVAR to a few hundred kVAR). The price of a capacitor for low-voltage applications can vary depending on the capacity, brand, and build quality.

  • Medium-Voltage Capacitors: These capacitors are used for higher voltages (usually 11 kV and 20 kV) and are mostly used in power substations and distribution networks.


In addition, compensation capacitors can be divided into different types based on the insulating material. The most common type is polypropylene capacitors, which are very popular due to their high efficiency and long life. Also, some capacitors are designed for specific applications, such as high-harmonic environments, using special gases.

Important Considerations for Selecting and Installing a Compensation Capacitor

Choosing the right capacitor is a specialized task and should be done by an electrical expert. The most important factors to consider in the selection process are:

  • Capacitor Capacity (kVAR): This value should be calculated based on the system's needs and the current power factor.

  • Rated Voltage: The capacitor's voltage must be compatible with the power grid's voltage.

  • Protection: Capacitors must have appropriate protection systems against overvoltage and overcurrent.

  • Ancillary Equipment: In many cases, the use of smart regulators and capacitor contactors is essential for automatic management of the capacitor bank.


In summary, reactive power compensation capacitors are powerful tools for optimizing energy consumption and reducing electricity costs. By correctly using this equipment, you can not only achieve economic savings but also help improve the quality and stability of the power grid.

For specialized consultation and to find out the price of quality capacitors, visit the Behnicko store website now or contact us by phone. Our experts are ready to answer your questions.

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