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== Global compensation  ==

(see {{FigRef|L14}}) 

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Where a load is continuous and stable, global compensation can be applied}}

=== Principle ===

The capacitor bank is connected to the busbars of the main LV distribution board for the installation, and remains in service during the period of normal load.

=== Advantages ===

The global type of compensation: 
*Reduces the tariff penalties for excessive consumption of kvars 
*Reduces the apparent power kVA demand, on which standing charges are usually based 
*Relieves the supply transformer, which is then able to accept more load if necessary

=== Comments ===

*Reactive current still flows in all conductors of cables leaving (i.e. downstream of) the main LV distribution board 
*For the above reason, the sizing of these cables, and power losses in them, are not improved by the global mode of compensation.

{{FigImage|DB422590_EN|svg|L14|Global compensation}}

== Compensation by sector  ==

(see {{FigRef|L15}}) 

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Compensation by sector is recommended when the installation is extensive, and where the load/time patterns differ from one part of the installation to another}}

=== Principle === 

Capacitor banks are connected to busbars of each local distribution board, as shown in {{FigureRef|L15}}.

A significant part of the installation benefits from this arrangement, notably the feeder cables from the main distribution board to each of the local distribution boards at which the compensation measures are applied.

=== Advantages ===

The compensation by sector: 
*Reduces the tariff penalties for excessive consumption of kvars 
*Reduces the apparent power kVA demand, on which standing charges are usually based 
*Relieves the supply transformer, which is then able to accept more load if necessary 
*The size of the cables supplying the local distribution boards may be reduced, or will have additional capacity for possible load increases 
*Losses in the same cables will be reduced

=== Comments ===

*Reactive current still flows in all cables downstream of the local distribution boards 
*For the above reason, the sizing of these cables, and the power losses in them, are not improved by compensation by sector 
*Where large changes in loads occur, there is always a risk of overcompensation and consequent overvoltage problems

{{FigImage|DB422591_EN|svg|L15|Compensation by sector}}

== Individual compensation ==

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Individual compensation should be considered when the power of motor is significant with respect to power of the installation}}

=== Principle === 

Capacitors are connected directly to the terminals of inductive circuit. Individual compensation should be considered when the power of the motor is significant with respect to the declared power requirement (kVA) of the installation.

The kvar rating of the capacitor bank is in the order of 25% of the kW rating of the motor. Complementary compensation at the origin of the installation (transformer) may also be beneficial. 

=== Advantages ===

Individual compensation: 
*Reduces the tariff penalties for excessive consumption of kvars 
*Reduces the apparent power kVA demand 
*Reduces the size of all cables as well as the cable losses

=== Comments === 

*Significant reactive currents no longer exist in the installation