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Registration No: 117327/070/071 PAN No: 601564440

BENEFITS OF POWER FACTOR CORRECTION

Most people associate electricity and energy with (KW). In fact KW only makes up a part of overall energy uses in home,
commercial building or an industrial manufacturing plant. In the world of AC power, there are actually three types of power:

 Apparent Power (Measured in Volt-Amps)

 Real power ( Measured in Watt)
 Reactive Power (Measured in VARs)

The relationship between Apparent Power and other two is influenced by what is called power factor (Pf). The Pf can be
thought of as a measure of Electrical efficiency in a power system. Numerous benefits can be derived by power factor
correction to a facility.

Apparent power (KVA) Reactive power (KVAr)

Real power (KW)

Benefit: Reducing Utility bills

Utilities have several different rate structures that may be used for billing.

 KVA Billing- Straight charges for all Apparent Power consumed.

 KVAr billing- Additional charges for Reactive power.( N/A in Nepal)
 Power factor Penalty- Charges based on the customer’s actual power factor. ( N/A in Nepal)
 Adjusted KW Demand – The real power demand is adjusted by a formula and is based on the customer’s actual power
factor.
In all cases, the power factor of a customer will become a direct or indirect factor in the utility bill.

Power bills can be reduced by introducing capacitors to the facility, which can reduce the need for KVAr required from the
utility. Capacitors have the added effect of reducing line losses which can reduce the amount of unit consumption required by a
facility. Additional benefits of reducing line losses will be discussed later in this document.

Head Office: Bharatpur Municipality-12, Chitwan, Nepal

Contact: +977-9845049523, bishnu.rgm@gmail.com
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Registration No: 117327/070/071 PAN No: 601564440

Benefit: Electrical system Capacity

Capacitors in a facility produce a reactive Energy that motors require to produce magnetizing current for induction motors
and transformers. This reduces the overall current needed from the power supply. This translates into reduced loads on both
transformers and feeder circuits.

Reduced loads on transformers can have a variety of positive Impacts that include but are not limited to: less maintenance
reduced breaker trips and higher overload capacity.

Benefit: Improved voltage Level

Low voltage may be caused by a lack of Reactive Energy. Additionally, voltage drops are often caused by Dynamic load
changes. In both cases, the effect can be harmful.

In facilities with motors, low voltage reduces motor efficiency and can cause overheating. Interference may be introduced by
low voltage in lighting and other electrical instruments (i.e. computers).

Welding plants in particular, may suffer from voltage drops. The quality of welds is directly proportional to the voltage. These
voltage drops can cause bad welds which translate into scraps or possible product recalls if allowed to persist.

Real time capacitor system (<1 cycle) have the capability of providing fast compensation to a dynamic load that cannot
typically be seen by other conventional capacitor bank. I can help to raise and stabilize voltage across a facility by providing
reactive energy, thus improvement of overall production.

Benefit: Reduced line losses

Differences exist between DC resistances of various conducting elements and actual apparent AC resistances of those same
elements. There are many different phenomena present in Electrical systems which, when combined, can create substantial
energy losses. Reducing the current used in a facility as well as properly minimizing harmonics can have a significant effect on
reducing line losses.

Capacitors can help a system by supplying KVAr as needed, therefore reducing line currents. However, extreme care should be
taken when installing capacitors as it is quit possible to increase harmonics by installing capacitors. Installed capacitor
systems ought to have tuned filters to reduce the effects of harmonics and resonance.

Head Office: Bharatpur Municipality-12, Chitwan, Nepal

Contact: +977-9845049523, bishnu.rgm@gmail.com
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Registration No: 117327/070/071 PAN No: 601564440

Some related formulas

 Power factor = KW/KVA

 KVAr Required = KW(Tan(cos¯1(old pf))- Tan(cos¯1(New pf)))
 % Reduction Power loss = 100(1-(old pf/new pf)²)
 % Voltage Raise = Capacitor KVAr * % Transformer Impedance
 KVAr rating of Capacitor = √3 *V*I/1000 KVAr

Multiplier Factor for PF correction:

Initial Power Proposed Power Factor

factor
0.85 0.90 0.95 0.98 1.0
0.50 1.112 1.248 1.403 1.529 1.732
0.52 1.024 1.160 1.315 1.441 1.644
0.54 0.939 1.075 1.230 1.356 1.559
0.56 0.860 0.996 1.151 1.277 1.480
0.58 0.785 0.921 1.076 1.202 1.405
0.60 0.714 0.849 1.005 1.131 1.334
0.62 0.645 0.781 0.936 1.062 1.265
0.64 0.580 0.716 0.871 0.997 1.200
0.66 0.518 0.654 0.809 0.935 1.138
0.68 0.459 0.595 0.750 0.876 1.079
0.70 0.400 0.536 0.691 0.811 1.020
0.72 0.343 0.479 0.634 0.754 0.963
0.74 0.289 0.425 0.580 0.700 0.909
0.76 0.235 0.371 0.526 0.652 0.855
0.78 0.183 0.319 0.473 0.594 0.803
0.80 0.130 0.266 0.421 0.541 0.750
0.82 0.078 0.214 0.369 0.489 0.698
0.84 0.026 0.162 0.317 0.437 0.645

Head Office: Bharatpur Municipality-12, Chitwan, Nepal

Contact: +977-9845049523, bishnu.rgm@gmail.com
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Registration No: 117327/070/071 PAN No: 601564440
0.86 0.109 0.264 0.390 0.593
0.88 0.054 0.209 0.335 0.538
0.90 0.155 0.281 0.484

Head Office: Bharatpur Municipality-12, Chitwan, Nepal

Contact: +977-9845049523, bishnu.rgm@gmail.com