System operators can exert more control over the power factor when capacitor banks are installed in what location?

The installation of capacitor banks at substations allows system operators to exert greater control over the power factor because substations are critical points in the power distribution network where voltage levels are stepped down for distribution to consumers. By placing capacitor banks at this location, operators can effectively manage reactive power and improve the overall power factor of the grid. This is particularly important since improving the power factor reduces losses in the system, increases capacity, and enhances voltage stability.

When capacitor banks are located at substations, they can quickly react to changes in load and demand, helping to compensate for inductive loads commonly seen in industrial and commercial settings. This real-time adjustment capability is crucial for maintaining grid stability and optimizing the performance of the electrical system.

In contrast, other locations such as homes, field areas, or loading bays lack the same network-wide influence on power factor corrections that substations provide. While capacitors can certainly be used in these locations for local improvements, they do not offer the same level of control or impact on the broader electrical network as those installed in substations.