Connection of Shunt Capacitors - Vantage Points

An unloaded distribution line is capacitive in character and a fully loaded line has inherent inductive and resistive features. In distribution systems, especially those operating on low power factors, the inductive reactance create a major contribution to the voltage drop. Commonly it is the voltage drop consideration that dictates the amount of power which could be distributed.

The optimum rating of capacitor banks for a distribution system is two-thirds of the average kVAR needs of that distribution system. The vantage point is at two-thirds the length of the major distributor from the transformer.