Capacitor bank: instantly more capacity and lower energy costs

A capacitor bank is the most effective method to reduce reactive power and improve the Power Factor (Cos Phi) of your electrical installation. By compensating reactive current locally, you relieve cables and transformers and avoid fines from the grid operator. However, in modern installations with many power electronics, a standard capacitor bank is not without risk. Without proper engineering, resonances can occur, resulting in dangerous situations. This page tells you how to apply capacitor banks safely in low- and medium-voltage installations.

In brief: What you need to know about capacitor banks

Short on time? Here are the key points you need to know:

For whom is reactive current compensation relevant?

Optimising Cos Phi through capacitor banks is crucial for organisations with significant inductive power demand. This concerns in particular:

  • Industry & Manufacturing: companies with many electric motors, pumps, fans or conveyors.
  • Large consumers: connections that are contractually bound to a cos phi of >0.85 or >0.9 to avoid penalties.
  • Installation managers: Those dealing with an installation that is running up against its maximum capacity (the 'main switch' tripped or the transformer is full).
  • New Construction & Expansion: where one wants to delay or avoid investment in a heavier transformer or grid connection by using existing capacity more efficiently.

What is a capacitor bank and how does it work?

A capacitor bank consists of switchable capacitors (usually in steps) placed in parallel with the load. Technically, a capacitor acts as a temporary storage for electrical charge.

The principle of reactive power Many electrical equipment (motors, transformers, ballasts) operate on the basis of magnetism. Reactive power (kVAr) is needed to build up this magnetic field. This power shuttles back and forth between the source and the consumer without being converted into actual work (kW). We call this reactive power. Although it does not perform any labour, this current does load your cables, switches and transformers.

Bank operation A capacitor bank provides this required reactive power locally. Instead of the reactive power having to flow all the way from the power plant via the transformer through your cables to the motor, the capacitor bank delivers this power 'around the corner'.

Medium-voltage capacitor

Comparison: Think of it as a warehouse right next to the production line. Instead of a forklift (the power) having to drive up and down to a distant distribution centre (the grid operator) for each component (magnetic field), you get it directly from the local warehouse (the capacitor bank). The road (your cable) remains free for other truck traffic.

Difference between low voltage and medium voltage

The basic operation is identical, but the implementation and application differ.

Low-voltage capacitor banks (LV) These are used in 400V or 690V installations. They are often of modular design and are placed in the main distribution system or decentralised at large consumers.

  • Type: Mostly automatically controlled. A Power Factor Controller (controller) measures the current cos phi and switches stages (e.g. 25 or 50 kVAr) on or off to achieve the target value.

Medium-voltage capacitor banks (MV) These installations (typically 10kV to 30kV) are deployed at very high power levels or directly behind the purchase station transformer.

  • Type: often 'open rack' arrangements in a secure cage or 'enclosed' in metal enclosures. Because of the high voltages and powers, safety requirements and component selection (switches, damping coils) are even more critical here. Here, fast switching is less frequent; they often serve for base-load compensation.

Why invest in reactive current compensation?

Installing a capacitor bank often pays for itself within 1 to 2 years. The impact is threefold:

  1. Eliminate penalties (Financial) Grid operators charge if your Cos Phi is too low (often <0.85 or <0.9) or if you use unnecessarily much kVA transmission power. By offsetting, these charges disappear directly from your energy bill.
  2. Freeing up capacity (Operational) This is often the most important but underestimated driver. A 1000 kVA transformer loaded with a Cos Phi of 0.7 can only deliver 700 kW of useful power. If you improve the Cos Phi to 0.98, you can get 980 kW from the same transformer.
    • Case study: At a customer (recycling industry), an investment in a new transformer and distribution system was threatening to be necessary for a new production line. Installing an active capacitor bank freed up 550 amps of space on the existing plant. The expansion could proceed without modification of the main infrastructure.
  3. Lowering grid losses (Sustainability) The current that does not flow through the cables also does not cause heat losses. This leads to lower temperatures of cabling and transformers, which extends the life of components and further reduces energy bills.

The risk of resonance: why 'tuning' is crucial

In traditional, purely inductive grids, installing a capacitor bank was simple. However, modern installations are full of non-linear loads such as variable speed drives, LED lighting and rectifiers. These devices cause harmonic pollution.

What goes wrong? A transformer has an inductive property (L) and a capacitor bank has a capacitive property (C). Together, they form a parallel LC circuit. Each LC circuit has a natural resonant frequency. If this resonant frequency happens to coincide with a harmonic frequency present in your installation (e.g. the 5th harmonic at 250Hz or the 7th at 350Hz), resonance occurs. Currents and voltages are then amplified uncontrollably.

Reactance capacitor
Reactance inductor

Effects of resonance:

  • Overheating and explosion of capacitors.
  • Unexplained tripping of main and sub-switches.
  • Accelerated ageing of all connected equipment.
  • Voltage distortion disrupting control electronics (PLCs).

The Solution: The tuned capacitor bank To prevent this, we apply 'tuned' (detuned) capacitor banks. Here, a specific coil (reactor) is placed in series with the capacitor. This lowers the resonant frequency of the circuit to a safe point where no harmonic currents are present (e.g. 189Hz). The bank then behaves inductively for the harmonic frequencies, making resonance physically impossible.

Nuance: In installations with extremely high contamination or rapidly changing loads, even a tuned capacitor bank is sometimes not sufficient. In that case, a Hybrid Solution or an Active Harmonic Filter (AHF) with reactive current compensation function is the only safe option.

Common procurement and installation mistakes

  • Sailing blind on the energy bill: Sizing a capacitor bank purely on the basis of kVAr data from the energy bill is risky. You will not know when the peak occurs and whether harmonics are present.
  • Installation of standard (untuned) banks: In 90% of modern industry, a standard bank without coils is a 'time bomb' due to the presence of variable speed drives.
  • Forgetting transformer influence: When a bank is installed, the overall impedance of the installation changes. This can affect short-circuit power and protection settings.
  • Overcompensation: Switching on too much capacitor power (e.g. at night when the load is low) can lead to a capacitive Cos Phi. This causes voltage drift (overvoltage) and can also result in penalties. A good regulator prevents this.
  • No maintenance: Capacitors age and lose capacity. A bank that supplied 200 kVAr five years ago may now supply only 150 kVAr. Regular inspection is necessary.

Checklist: Roadmap to safe implementation

Want to increase capacity or avoid penalties? Follow these steps for a foolproof solution.

  1. Inventory: Collect energy bills and the distributor's E-schedule.
  2. Analysis & Simulation: Based on measurement, engineers determine whether a standard tuned bank is sufficient, or whether there are specific resonance points that require advanced filtering.
  3. Selection: choose high-quality components. Inexpensive capacitors often have a shorter service life and can withstand thermal stress worse.
  4. Installation & Commissioning: Position the bench and set the Power Factor Controller correctly (e.g. to cos phi 0.95 or 0.98 inductive).
  5. Verification: Perform a verification measurement after installation to prove that the cos phi is improved as well as that no resonance occurs.

When do you call on HyTEPS?

Although any home installer can put up a cabinet, specialist knowledge is required once the installation becomes more complex. Contact our engineers as:

  • You have variable speed drives, robotics, EV chargers or PV inverters in your installation (risk of harmonics).
  • You have seen capacitors fail or 'bulge' before.
  • Operating reliability is critical (data centres, hospitals, process industry) and downtime is not an option.
  • You need a medium-voltage solution.
  • You have doubts about correct dimensioning and want to eliminate resonance risks through simulation.

Want to know more about Power Quality?

Delve further into the subject matter via these related pages:

Start with insight into your installation

Want to free up space on your transformer immediately or avoid penalties, without the risk of breakdowns? Speak to an engineer from HyTEPS. We will analyse your situation and simulate the impact of a capacitor bank before installing it. So you are assured of results and safety.

HyTEPS

Beemdstraat 3

5653 MA Eindhoven