What is a capacitor bank and how does it work?
A capacitor bank groups capacitors to help meet an installation’s reactive-power requirement. Its purpose is to reduce reactive power drawn from the supply and improve power factor.

From a component to a system
Capacitors supply capacitive reactive power in installations with inductive loads. A bank also includes switching, protection and control equipment. Selection cannot therefore be reduced to capacitance alone.
Fixed or automatic?
Fixed compensation is considered where reactive-power demand is relatively stable. In automatic banks, a controller connects or disconnects stages as demand changes. Rapidly changing loads may require faster switching solutions.
What information is needed?
Consider the load profile, existing power factor, voltage and harmonic content together. Total installed power alone is insufficient to determine a suitable stage arrangement.
A capacitor bank does not generate active energy. Improving power factor does not imply an equal percentage reduction in active energy consumption.
Schneider Electric — Equipment to improve power factor ↗
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