For optimum utilization of available power the reactive power consumption should be reduced or nullified i.e. power factor should be unity, hence, most of the Power Distribution companies have policy to penalize the industrial and commercial consumers for not maintaining power factor above certain limit (generally above 0.90 value). However, due to reactive power drawn by capacitive or inductive load in the consumer premises the power factor is either lagging or leading, thus to maintain it within limit i.e. for compensating or supplying required KVAR, the capacitors (in case of lagging PF) or reactors ( in case of leading PF) are connected across the system. For stable load the fixed KVAR compensation is required , while for variable load the KVAR requirement also changes as per the load duration cycle, thus in such case the Automatic Power Factor control Panel is installed
Electric Power quality is a term that has captured increasing attention in power engineering in the fresh years. The power quality is mainly depends on the needs of the equipment that is being supplied. Usually the term it refers for maintaining a sinusoidal waveform of bus voltages at rated voltage and frequency. The waveform of electric power at generation stage is purely sinusoidal and free from any distortion. All the Power conversion and ingesting equipment are also designed to function under pure sinusoidal voltage waveforms. However, lots of devices that distorted the supply waveform. These distortions may spread all over the electrical network. In fresh years, there has been an increased use of non-linear loads, which has resulted in an increased fraction of non-sinusoidal currents and voltages in Electric Network. Classification of power quality areas may be made according to the source of the problem such as converters, magnetic circuit non linearity, arc furnace or by the wave shape of the signal such as harmonics, flicker or by the radio frequency interference.