How is Power Factor Improved?
| Power Factor Correction (PFC) is achieved by the addition of equipment capacitors which generate Reactive Power within your premises. This compensates for the reactive power demand of the inductive load and thus reduces the amount of KVA which much be supplied by the distribution network. The cost of PFC equipment will be offset by these savings in network charges. The payback period on equipment is usually less than 24 months. Power Factor improvements reduce the currents through your site transformers and switchboards and hence can reduce the costs of electrical supply upgrades. Sites who improve power factor often report the disappearance of many niggling faults, which were unknowingly being triggered by electrical hotspots or high currents. Typically the corrected power factor will be between 0.95 and 0.98. Example Customer – BPA Manufacturing Pty Ltd The power factor correction size required is 1100kVAr’s (Reactive Power). After correction the apparent power required to produce 1525kW of real power is reduced to 1605KVA, a saving of 605KVA. The estimated savings per year based on $62 KVA per year would be $37,500. Given the installed cost of power factor correction of $58,300, the payback time would be under 19 months. What should I Do?
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