Capacitors ( or capacitor bank) are used to improve the operating efficiency of electric power systems and help transmission and distribution system voltage stability during disturbances and high load conditions.

• Capacitors are used to cancel out the lagging current effects from the motors and transformers.
• Capacitor can reduce the system losses and help provide voltage support.
• Another benefit of the capacitor is how they can reduce the total current flowing through a wire thus leaving capacity in the conductors for additional load.

Capacitor banks can be left online continuously to meet the steady state reactive power requirements of the system or they can be switched on or off to meet dynamic reactive requirements.