Power Factor
Power factor (pf) is an electrical phenomenon created by inductive loads such as motors. In general terms, power factor is calculated by the formula kW/kVA. The worse the power factor, the greater the kVA metered. Energy companies and network companies prefer a good power factor in order to reduce the overall kVA on components in the electrical network (eg. transformers) and therefore the overall maintenance cost for their network.
Network companies therefore tend to charge their demand charge based on kVA or kVAR metered readings rather than kW, as an incentive for industrial consumers to improve their power factor. This provides a direct incentive on customers to reduce their line charges in alignment with costs the network company incurs dealing with power factor.
Installing power factor correction equipment therefore has a financial benefit to industrial consumers. The determination of the right sized power factor correction equipment can be determined through an investigation and analysis by Watts Projections. It is important for this analysis and equipment determination to be carried out by skilled professionals with the technical knowledge and experience, because other considerations such as harmonic currents need to be taken into consideration in the equipment design.
Network companies therefore tend to charge their demand charge based on kVA or kVAR metered readings rather than kW, as an incentive for industrial consumers to improve their power factor. This provides a direct incentive on customers to reduce their line charges in alignment with costs the network company incurs dealing with power factor.
Installing power factor correction equipment therefore has a financial benefit to industrial consumers. The determination of the right sized power factor correction equipment can be determined through an investigation and analysis by Watts Projections. It is important for this analysis and equipment determination to be carried out by skilled professionals with the technical knowledge and experience, because other considerations such as harmonic currents need to be taken into consideration in the equipment design.
