Electrical machines draw real power and reactive power from the supply. The real power is required to do useful work, and the reactive power is required to provide the magnetic fields necessary for the machines to work. The real power (KW) and the reactive power (KVAR) both draw current from the supply and therefore both contribute to supply losses and voltage drop.
Our electricity meter measures real power only and we pay for KWHrs used.
Industrial Power Tools
As a measure to reduce the losses in the electrical supply, many electrical suppliers charge penalties for a poor power factor, or for a KVA maximum demand. This provides the incentive to add PF correction to improve the power factor and reduce the penalties. In some cases, the cost of adding the PF correction can be recovered in less than 12 months.
Adding PFC capacitors reduces the reactive power drawn from the supply and consequently reduces the current flowing from the supply. The reactive power required by the machines, is supplied by the capacitors. The current on the supply is reduced, but the current into the machine is not altered.
As the machine current is not altered, the KW consumed by that machine does not reduce with PF correction, but if there is a significant length of cable between the electricity meter and the PF correction, and the losses in the cable are high, there will be some reduction in the cable losses and that will show as a small reduction in KW consumed.
The reduction in losses in the supply can be significant and if all consumers operated with a power factor of better than 0.95, the need for increased generation capacity would be reduced.
PF correction can be applied as static correction to each motor, or as bulk correction at the main supply input. Static correction is viable for small installations with few motors and bulk correction is better for large installations with many motors.
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