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What is the Principle of Individual compensation and its advantages in power factor correction system.

Principle of Compensation by Individual compensation type Power Factor Correction:
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.
 
Advantages:
  1.  Reduces the tariff penalties for excessive consumption of kvars
  2.  Reduces the apparent power kVA demand
  3.  Reduces the size of all cables as well as the cable losses
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