What is the purpose of a capacitor bank in substations?

The purpose of a capacitor bank in substations primarily revolves around improving power factor and voltage stability. When a capacitor bank is connected to the power system, it provides reactive power support. This is crucial because many industrial loads are inductive, meaning they consume more reactive power than they produce, leading to a poor power factor. A poor power factor can cause inefficiencies in power transmission, increase losses, and lead to higher costs for utilities and customers.

By adding a capacitor bank, additional reactive power is supplied, which helps to counteract the inductive loads. This results in an improved power factor, meaning the power system can operate more efficiently. Additionally, maintaining voltage stability is key in a substation. Capacitor banks help to regulate and maintain the voltage levels within acceptable limits, ensuring that all electrical equipment functions correctly and efficiently.

Regarding the other options, while generating new electrical power, converting current types, and increasing transmission efficiency are important aspects of power systems, they are not the primary functions of capacitor banks specifically within the context of a substation. Such functions may involve different types of equipment or strategies outside the scope of what capacitor banks do.