A properly designed capacitor bank is essential for improving power factor, reducing reactive power demand, minimizing system losses, and optimizing transformer capacity utilization.
For a 2500 kVA transformer operating at 415 V with an initial power factor of 0.80 improved to 0.95, the required capacitor bank capacity is approximately 1055 kVAr. In practice, a standard APFC capacitor bank of 1200–1300 kVAr is typically selected to provide effective compensation and operational flexibility.
Installing the capacitor bank on the LV side of the transformer helps improve energy efficiency, reduce voltage drop, lower I²R losses, enhance power quality, and avoid utility power factor penalties while ensuring reliable electrical system performance.