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Capacitor banks are used to control the power factor in a power system. By connecting suitable capacitors the power factor can be controlled / maintained at a desired level. The requirement of a capacitor changes as the load changes dynamically. The same amount of capacitors can not maintain the desired power factor all the time. To be able to connect only the required number of capacitors, multiple (bank of capacitors) capacitors are included in a system. An automatic controller senses the actual power factor and connects and disconnects the capacitors from the bank as required

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Q: Why are capacitors required to be in capacitor banks?
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