Power Factor Correction

Power factor is a measure of how effectively power is used in your system and is defined as the ratio of real (working) power to apparent (total) power. Real power is power that is put to productive use in your system and apparent power is the total power supplied by the distribution system.  

There are a number of positive benefits associated with installing PFC equipment and solutions, including: 

• Tariff savings (avoiding penalties) 

PFCs have the potential to reduce costs where tariffs are related to kVA maximum demand. Having poor power factor means you will pay more for your electricity supply as you are subject to kVA maximum demand charges. These fees can form a large percentage of your electricity bill, with some as high as 25%.  

• Capital avoidance 

By implementing effective PFC systems, you can reduce the loading of supply transformers, switchboards and cables and, as a result, release capacity in your electrical infrastructure without expanding supply infrastructure. This avoids or defers capital outlay on upgrading or purchasing new equipment to increase your electrical capacity. 

• Mitigation of network and technical problems 

PFCs can provide voltage stability and, as a result, reduce or eliminate issues associated with voltage fluctuation. A PFC system can be designed to filter harmful harmonic distortions which can cause premature failure of electrical equipment, nuisance tripping, breaching of connection agreements or impact the validity of Ex certifications of flameproof motors.