PFC stands for Power Factor Correction. 

Rethink Electricity recognizes this energy saving solution as being an essential part of DMS – Demand Management Scheme.

For end users such as manufacturers, commercial buildings or mines, the cost of poor power quality, and subsequently poor power factor, can include increased tariffs on electrical bills, poor equipment performance, equipment failure or potential loss of production.

Improving electrical system performance and lower operating costs. With both demand tariffs and operating costs, now is the time to consider the efficiency of your electrical distribution system.

A poor quality and unstable power supply can have serious effects on your business operations, causing a range of technical problems, damage to sensitive equipment, increased operating costs or restricted capacity to expand. To mitigate these issues, considering Power Factor Correction should be a critical part of you’re Demand Management Scheme. 

Present issues surrounding escalating production costs, energy efficiency and a growing trend of electricity supply companies introducing kVA - based maximum demand charges, are driving companies to re-think how they optimise their electricity supply and distribution infrastructure. 

Power quality equipment and solutions are increasingly being considered to alleviate technical problems associated with poor power quality, reduce kVA demand charges and avoid capital outlay when looking to increase capacity (amps). 

To mitigate these issues, considering Power Factor Correction PFC should be a critical part of your energy management strategy moving forward for any medium to large consumer of power.

What is power factor?

Power factor is a measure of how efficiently electrical power is being consumed on site. The way a business manages their power and electrical infrastructure is therefore incredibly important, as poor power factor can have a number of financial or operational implications.

While a power factor of 1 (or unity) is ideal, in most cases it is not economically viable as compensation is not a linear function. Though largely dependent on connection agreements, it is widely accepted that a power factor of 0.95 or higher is considered to be an efficient use of power, while power factor lower than 0.9 risks breaching agreements and can lead to higher than necessary kVA demands and subsequent higher electricity bill charges.

Power factor is affected particularly by the electric motors in long walls, conveyors, ventilation fans, coal preparation plants and refrigeration etc., all of which use large amounts of energy and require large amounts of reactive power to support the network.

Benefits of installing Power Factor Correction systems

There are a number of positive benefits associated with installing PFC equipment and solutions, as outlined below.

• Tariff savings (avoiding penalties)

Reduces costs where tariffs are related to KVA maximum demand, with poor power factor, you will pay more for your electricity supply as you are subject to KVA maximum demand charges. These charges can often be a large percentage of an electricity bill, with some as high as 25-40% of a total electricity bill.

• Capital avoidance

Reduce the loading of supply transformers, switchboards and cables and as a result release capacity in your electrical infrastructure and plant without expanding supply infrastructure, thereby avoiding or deferring capital outlay on upgrading or purchasing new equipment to increase your electrical capacity. 

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