In an alternating current transmission line, the inductance and capacitance of the line conductors can be significant. The currents that flow in these
components of transmission line impedance constitute reactive power, which transmits no energy to the load. Reactive current flow causes extra losses
in the transmission circuit. The ratio of real power (transmitted to the load) to apparent power is the power factor. As reactive current increases,
the reactive power increases and the power factor decreases. For systems with low power factors, losses are higher than for systems with high power
factors. Utilities add capacitor banks and other components throughout the system — such as phase-shifting transformers, static VAR compensators,
and flexible AC transmission systems (FACTS) — to control reactive power flow for reduction of losses and stabilization of system voltage.
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