The capacitor bank provides reactive power at grid substation. The voltage regulation problem frequently reduces so of circulation of reactive power. Unlike the active power, reactive power can be produced, transmitted and absorbed of course with in the certain limit, which have always to be workout. At any point in the system shunt capacitor are commonly used in all voltage and in all size. Capacitors are used to control the level of the voltage supplied to the customer by reducing or eliminating the voltage drop in the system caused by inductive reactive loads.

   An AC system cannot function with the highest transmission capability at minimum cost and at the highest efficiency unless the reactive compensation is carefully applied. The capacitor i.e. VAR is installed in receiving substation, load substation for fast, staples control of reactive power compensation of voltage control .

  Capacitor banks are installed following purposes:
  •  To improve the power factor of the system & there by regulating the system voltage 
  •  Reactive power compensation 
  •  To reduce the loss 
  •  Increased voltage level at the load 
  •  Reduced system losses 
  •  Increase power factor of loading current
  Benefits of using the capacitor bank are many and the reason is that capacitor reduces the reactive current flowing in the whole system from generator to the point of installation. The insulator for the overhead lines provides insulation to the power .
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