To make good use of your purchased supply capacity and reduce energy losses due to over loading/heating of cables and distribution gear, the overall power factor of your site should be near 0.99 or 99%.

Furthermore, to avoid power factor cost penalties it should be greater than 0.90 or 90%.

The issues

The largest contributors to poor factor are inductive loads generated by motors, heating equipment, arc welders and certain types of lighting. Unfortunately the introduction of variable speed drives (VSDs) to save energy can potentially reduce power factor by damaging correction equipment. Power factor will be reflected in a higher kVA demand, which in turn will influence the contracted available supply capacity (ASC). Exceeding the ASC will incur extra penalty charges and could impact on the security of supply on the site or in the locality.

Improving your power factor will lead to cost savings from:

  • Avoidance of power factor penalty
  • Reduction in the maximum demand
  • Reduction of capacity charges or release of network capacity
  • Reduced maintenance costs
  • Improved security of supply

How can CMR help?

Taking a systematic approach, we first assess your site’s overall power factor and estimate the cost benefits of installing Power Factor Correction (PFC).

Next we identify which equipment or systems contribute to poor power factor and then identify the optimum size and location for installation of PFC.

Post installation we will report on the benefits achieved, including support to amend the site’s tariff structure accordingly.

For further information please contact us at: