VAR Compensation Benefits

General Benefits

- Protection against direct contact to live parts.
- Reduction of space. The lack of fences and the use of internal fused capacitors allows a very important reduction of the dimensions of the enclosures.
- Possibility to include switchgear inside and to design an automatic bank or an auto protected bank.


Technical Benefits

- Reducing internal distribution system losses: Where, as PF decreases; the apparent power (kVA) increases with P active (kW) held constant, so losses that are computed to be 3I² R will increase.
- Increasing the internal electrical distribution system capacity.
- Enhancing voltage stability.
- Reducing the demand may allow you to reduce the contracted power demand or increase your loads without needing more contracted power.   
- Increasing cables’ lifetime due to reduction of current passing through it, which leads also to decrease temperature rise so lifetime of insulation will increase.
- Decrease the maximum kVA


Economical Benefits

- In Egypt specifically, utilities impose a penalty in the form of higher charges for customers with contracted loads greater than 500 kW whose power factor is less 0.9.
- To balance the above mentioned penalty and to serve as a power factor incentive, a bonus is offered to customers who maintain an average annual PF higher than 0.92 and up to a maximum of 0.95.