The power loss in the distribution system is
calculated by multiplying resistance and square of current. The power losses
are caused by poor power factor and resulting reactive current flow in the
system.

*% Reduction losses*

= 100 – 100 ( Original power factor / New power factor )^{2}

**Problem :**

**The power factor of the inductive load is 0.78
lagging. What percentage of losses is reduced if the power factor improves up
to 98% by connecting capacitor bank across the load?**

**Solution :**

*% Reduction of losses *

= 100 – 100 ( Original power factor / New power factor
)^{2}

= 100 – 100 ( 0.78
/ 0.98 )^{2}

= 100 – 100 ( 0.78 / 0.98 )^{2}

= 100 – 100 ( 0.78 / 0.98 )^{2}

= 36.65%

If the power factor improves from 0.78 to 0.98, the losses are reduced by 36.65%

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