Real (working) power is the electricity that is put to productive use in your business.  Apparent (total) power is the quantity of electricity supplied by the Grid to your business – and what you pay for. Power Factor (PF) is the ratio of real power to apparent power. Ideally that ratio will be 1, i.e. you use 100% of the electricity you are paying for. Often that is not the case – for instance, a PF of 0.7 means you are usefully using only 70% of the electricity you are paying for!

The wasted power is known as reactive (non-working) power and is mostly caused when equipment with inductive loads, such as transformers, electric motors, air-conditioning systems and fluorescent lighting, is present. Apart from unnecessarily increasing your electricity consumption and, therefore, your energy cost, a low PF can also damage and/or shorten the working life of your equipment.

As reactive power in a system draws more current it can have costly, negative implications for the electricity distribution network as a whole – electricity suppliers stipulate a minimum PF of 0.90 in their Electricity Supply Agreements. Failure to remedy a low PF, could lead to your electricity supply being terminated.

Low PF can be improved by installing Power Factor Correction (PFC) equipment. These are, essentially, appropriately-sized banks of capacitors that counteract the reactive power in the system, reducing the apparent power required, decreasing electricity demand and energy costs. It can also reduce Peak load demand charges where applicable.

Low PF is a site specific problem, but typical savings of 10-15% are often achieved, with payback periods of less than 3 years the norm.

If your business has a Low Power Factor and you are interested in finding out what can be done to remedy it, contact Richard Pryke on 0435 628 138 or email: {HERE}