The huge gap between demand and supply has put extra ordinary stress on Electrical Supply systems. They are stretched beyond its limits, which give rise to several Power Quality related issues. Hence, it has become equally important, to pay highest attention, towards making use of efficient and effective utilization of power. All the possible leakages, from source to the distribution end point, are to be avoided by taking integrated solution approach. The poor power factor was considered to be the only parameter which is responsible for making electrical system inefficient. The more emphasis was given on the solutions (like use of PF correction capacitors) to improve the power factor or to apply penalty on the users, if they fail to maintain PF. However, this does not address the problem of high percentage of harmonics getting injected into the supply line (Current Harmonics), which are deteriorating the quality of power, to the great extent. It is in-fact, polluting the whole power supply system. The increased level of current harmonics is the result of phenomenal growth of Industrial and IT establishment in recent past. The power consumption pattern has totally changed, due to the nature of electric power consuming equipment employed by these establishments. The Industrial and Commercial applications are increasingly make use of large number of PCs, Servers, UPSs, AC / DC drives, Rectifiers, Chargers, SMPS, Energy saving CFL lamps, etc. These equipments draw current which is non-sinusoidal in nature, which categorises them as non-linear type of loads. These non-linear loads, put extensive stress on Electrical distribution system and also, the supply system, due to generation of Harmonic currents. The high level of harmonics lowers down power factor, affects the power usage and reduces component life. They also affect performance of DG sets & Utility Transformers, cables and switchgears used and causes great drain on the power supply. The harmonic pollution can be effectively controlled by making use of Active Harmonics filter. These are solid state, State of the Art Designs, which measure level of current harmonic in supply line and eliminate it by generating counter harmonics. The control and reduction of harmonics improve the power quality, makes electrical distribution system more efficient. The power savings of 10% to 30% is possible, depending on the applications.

It increases the reliability of the installation and gives better control over the power flowing in the electrical system. This boosts up the profitability for supply authorities as well as the end user. With increase in the process automation in the manufacturing industry, electricity consumers are becoming more aware of the consequences of harmonics and poor power factor on their power supply. A spurious tripping of the switchgear due to power pollution (harmonic pollution) in the supply can stop the entire production line in sensitive industries such as continuous process manufacturing, printing and textiles. Meanwhile utilities are facing the challenges of maintaining voltage and VAr support as number of non-linear loads are increasing and T&D capacity is becoming more constrained.