Q. What is the necessity of power factor improvement?
Ans. Low power factor causes the ratings of generators and transformers, the cross-sectional area of the bus-bars and the contact surface of the switchgear, the size of the feeders and distributors, energy losses, voltage drops in generators, transformers, transmission lines and distributors to increase.
Q. What factors determine the economical limit of power factor correction?
Ans. Economic limit of power factor correction is governed by the relative costs of the supply and power factor correcting equipment.