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IEC 60392:1972 specifies capacitors for power transformers. Substation shunt capacitor banks compensate inductive reactive power (power factor correction) — switched in during peak load to raise PF from 0.8 to above 0.95, reducing line losses and voltage drop.
Reactive compensation capacity:
Qc = P × (tan φ₁ − tan φ₂)
Example: P=100MW, cos φ₁=0.8→0.95
Qc = 100 × (0.75 − 0.33) = 42 MvarTNLab — Reactive compensation is “the cheapest way to increase grid transfer capacity” — every Mvar of capacitor compensation releases approximately 1.2 MW of line capacity.