WHAT IS IT?
This week in our “What Is It?” series, we discuss power factor correction, the recurring problem that can turn business electricity bills into a month-end nightmare. What is a correction system, what does it do, why is it installed and is it required? Why can it lead to costly bills, and what can be done to avoid problems? We explain in straightforward terms.
What Is Power Factor Correction?
Efficiency is one of the concepts we emphasize most in business. When it comes to energy, energy efficiency receives particular attention, making loss prevention a priority. While engineers and scientists investigate new energy sources, they also work to improve the quality of existing energy and reduce losses so it reaches users economically.
In electrical systems, losses occur between the generating plant and the load. One cause is reactive power, which electrical equipment needs to operate. Electrical machines draw reactive power from or return it to the grid. Reactive power provides the magnetic fields required by components such as motors and transformers, while active current is converted into the power that performs useful work.
If reactive energy in the system increases:
- The grid is loaded unnecessarily.
- Grid resource efficiency and capacity decrease.
- Losses increase.
If reactive current in the electrical system is reduced:
- Energy transmission capacity increases.
- Reducing voltage drops lowers the risk of equipment faults.
- Losses decrease.
Many electrical devices produce or consume reactive energy. The process of offsetting, absorbing or balancing this energy is called power factor correction.
Is a Correction System Needed Everywhere?
Almost every device and system produces reactive energy. Depending on its characteristics and power, each system delivers reactive energy to or draws it from the grid. This unwanted energy can be ignored up to certain limits. More specifically, facilities with contracted power above 10 kW are fitted with meters that calculate reactive energy. If consumption exceeds certain ratios, the electricity distributor adds charges to the bill.
What Is a Reactive Energy Charge? Why Are Bills Sometimes High?
The additional amount is billed as a reactive consumption charge. Because no separate service or actual energy consumption is received in return, it is commonly called a penalty. Installing a correction system can help avoid the charge.
How Can We Avoid Reactive Energy Charges?
No charge is applied if reactive energy use remains within 10%–20% of actual energy consumption. Above that ratio, additional charges apply. A correction system filters this reactive energy, allowing the energy drawn from the grid to be used more cleanly.
How and Why Should a Correction System Be Maintained?
Even with a correction system installed, a fault may cause reactive energy consumption without your knowledge and lead to a surprise bill. Periodic maintenance and inspections help prevent such problems. A monitoring system can also be installed to identify faults immediately, allowing intervention before reactive energy exceeds limits and extra charges appear on the bill. Monitoring also helps with end-of-month bill checks.
