Modern power networks cater to a wide variety of electrical and power electronics loads, which create a varying power demand on the supply system. In case of such varying loads, the power factor also varies as a function of the load requirements. It therefore becomes practically difficult to maintain consistent power factor by the use of fixed compensation i.e. fixed capacitors which shall need to be manually switched to suit the variations of the load. This will lead to situations where the installation can have a low power factor leading to higher demand charges and levy of power factor penalties.