It expresses the relationship between the visible power provided by the network and the active power that is actually usable for mechanical and thermal purposes; in other words, it gauges the installation's electrical efficiency. Maintaining it near unity will result in the greatest amount of usable power being expended.Real power, usually referred to as active power, is what drives an electrical system's operations. Increasing the real power is why we are employing the power factor capacitor panel.The best way to define reactive power is as the amount of "unused" power generated by reactive parts in an AC circuit or system.

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