capacitor Bank for motor

The capacitor bank is connected to the busbars of the main LV distribution board for installation and remains in service during the period of normal load.
Advantages
The global type of compensation:
Reduces the tariff penalties for excessive consumption of kvars
Reduces the apparent power kVA demand, on which standing charges are usually based
Relieves the supply transformer, which is then able to accept more load if necessary
Comments
Reactive current still flows in all conductors of cables leaving (i.e. downstream of) the main LV distribution board
For the above reason, the sizing of these cables, and the power losses in them, are not improved by the global mode of compensation.