How Much Active Power Demand Saving Can I Get by Improving the Power Factor?

April 29, 2024
May 2020

Understanding Demand Charges

Demand charges are a significant component of the monthly electric bill for many customers, levied by utilities to recoup investments in their distribution networks. These charges are based on the peak operating load each customer uses during the billing period. While there is some allowance for inefficiency in these charges, utilities commonly incentivize customers to maintain high electrical efficiency, measured by the power factor, to reduce these costs.

The Importance of Power Factor Correction

Power factor correction devices play a crucial role in enhancing the overall electrical efficiency upstream of their connection point in the network. These devices are essential for minimizing utility kVA demand charges, which are a direct cost to businesses and can be mitigated through improved power management.

Challenges Posed by Power Electronic Devices

Modern power electronic devices, which are prevalent in various industries due to their process control and energy-saving benefits, introduce specific challenges to electrical distribution systems. These include harmonics and rapid changes in reactive power requirements, which can disrupt the normal operation of other devices and increase operating costs. Common symptoms of problematic harmonics include overheating of transformers, motors, and cables, thermal tripping of protective devices, and logic faults in digital devices and drives. Additionally, harmonics can cause vibrations and noise in electrical machines, potentially reducing their lifespan due to elevated operating temperatures.

Power Conditioning Systems (PCS)

An active harmonic filter offers an effective solution to mitigate these issues. It helps reduce process-related voltage fluctuations, improve the operating life of equipment, and increase system capacity. AHFs are a component of power factor correction and harmonic filtering systems that provide several benefits, including:

·      Reducing kVA Loading: Improving power factor can offload transformers and the distribution network, allowing for the addition of more process equipment without further investment in distribution infrastructure.

·      Ensuring Compliance: PCSs help meet standards that limit harmonic pollution in the utility grid, which can be enforced by utilities to maintain system integrity.

·      Enhancing Reliability: By mitigating harmonics generated by non-linear loads, PCS/AHFs can prevent logic faults and other issues that lead to downtime and defective production.

·      Prolonging Equipment Lifespan: Reducing overheating in transformers, motors, and cables helps extend the lifespan of these critical components.

How Does PFC (Power Factor Correction) Help with Energy Saving in the Facility?

Basic Principles: Power losses in an electrical conductor are fundamentally linked to two factors: the resistance of the conductor (R) and the current (I) flowing through it. The power loss due to resistance in a conductor is calculated as R*I2. This equation underscores that power loss is proportional to the square of the current.

Influence of Power Factor: The power factor is a crucial element in the efficiency of power systems. It measures how effectively the power is being used, and a higher power factor indicates more efficient power usage. In electrical terms, power factor is defined as the ratio of active power (P, measured in watts) to apparent power (S, measured in volt-amperes):

A low power factor indicates that the circuit is drawing more current to deliver the same amount of active power compared to a circuit with a high power factor. Consequently, improving the power factor will reduce the current flow through the conductor for the same amount of power transmitted, thereby decreasing the power losses.

Now the question would be how much power can be saved by improving the power factor? Here is the answer:

Where:

·      LRC is the “Loss Reduction Coefficient” which is always less than 1

·       PFEx is the “existing power factor"

·       PFNEW is the "Desired power factor”

Then the reduced amount of losses will be:

Where:

·      ∆Pl is the “amount of reduction in power losses” or in other words in line with the “ The money not spent is the money saved “ approach, it can be considered “power savings”.

·      LRC is the “Loss Reduction Coefficient” as explained previously

·      ∆Pl is the amount of power losses in the facility before power factor correction.

This formula reveals that, for instance, elevating the power factor from 0.8 to 0.95 yields approximately a 29.1% reduction in losses. The table below illustrates the reduction in losses achieved by raising the power factor from an initial cosϕ to the ultimate values of 0.9 and 0.95.

System-Wide Power Quality Solutions

For larger industrial, commercial, and institutional users, reactive power compensation systems offer a cost-effective solution to address common power quality problems. These systems typically require lower initial capital expenditures compared to other methods such as UPS (Uninterrupted Power Supply), AVC (Active Voltage Compensator), and are well-suited for facilities like automotive, pulp and paper, steel, petrochemical, and mining operations.

Conclusion

Power quality remains a critical concern for many industries, directly impacting productivity and product quality. Implementing power factor correction and harmonic filtering solutions like AHFs not only addresses these issues but also leads to cost savings by reducing demand charges and prolonging the lifespan of electrical infrastructure. As energy demands continue to grow, optimizing power utilization is not only a challenge but a necessity for sustainable and efficient operation.

As highlighted earlier, power factor correction offers various savings across different revenue streams. The discussion here focused solely on the reduction in power losses. If you're interested in exploring further potential savings through power factor correction, we invite you to contact us for a complimentary bills analysis and estimates tailored to your specific needs. There's no obligation, and we're here to help you understand the potential benefits our system can offer.

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