How does automatic power factor controller works?

An automatic power factor controller (APFC) works by continuously monitoring the power factor of an electrical system and adjusting the reactive power compensation accordingly. It uses capacitors and reactors to balance the inductive loads, thereby reducing the phase difference between voltage and current. The controller automatically switches these capacitors in or out of the circuit based on real-time measurements, optimizing the power factor to improve energy efficiency and reduce utility costs. This helps in minimizing losses and prevents penalties from utility companies for poor power factor.