Installing an ICAR by Ortea Next power factor correction system, in addition to the economic savings obtained through the elimination of penalties in the energy bill, also provides additional savings due to the reduction of losses in the Medium/Low Voltage distribution transformer.
We have recently installed an 850kvar MULTImatic automatic low-voltage power factor correction system in a paper mill located in northern Italy. The plant works in continuous cycle with Medium Voltage connection and Low Voltage consumption and is fed by a 1600kVA distribution transformer.
HOW MUCH CAN YOU SAVE WITH POWER FACTOR CORRECTION?
From the table below we can see that by implementing this solution, bringing the Cosphi from 0.75 to 0.95, an annual economic saving of about 10,000 euros is achieved, to which should be added the savings from the penalties avoidance in the energy bill (about 1,400 euros monthly) for a total of about 27,000 euros/year.
This translates into a significant benefit in the following respects:
- Economic: payback time less than 12 months
- Environmental: reduction of CO2 equivalent emissions
| WITHOUT POWER FACTOR CORRECTION |
WITH POWER FACTOR CORRECTION |
MONTHLY SAVING | |
| Apparent power [kVA] | 1600 | 1600 | |
| Short-circuit power % of transformer | 2% | 2% | |
| Rated voltage [V] | 400 | 400 | |
| Monthly billed active power [kW] | 728 | 728 | |
| Cosphi | 0,75 | 0,95 | |
| Monthly reactive power [kvar] | 642 | 239 | |
| Average monthly absorbed current [A] | 1401 | 1106 | |
| Rated transformer current [A] | 2309 | 2309 | |
| Transformer losses at load [kW] | 12 | 7 | 5 |
| Monthly hours of operation [h] | 744 | 744 | 744 |
| Monthly energy dissipation [kWh] | 8762 | 5461 | 3301 |
| Energy price [€/kWh] | 0,25 | 0,25 | 0,25 |
| DISSIPATION COSTS ON TRANSFORMER |
2.191 € | 1.365 € | 825 € |
This data concerns an electrical installation with and without power factor correction. The installation has an apparent power of 1600 kVA and a nominal voltage of 400 V. Power factor correction improves the power factor from 0.75 to 0.95.
The power factor correction also reduces the monthly reactive power from 642 to 239 kvar and the average monthly absorbed current from 1401 A to 1106 A. The nominal transformer current remains constant at 2309 A. Transformer load losses decrease from 12 kW to 7 kW with power factor correction, saving 5 kW.
The system operates for 744 hours per month. Without power factor correction, 8762 kWh of energy is dissipated per month, while with power factor correction, dissipation drops to 5461 kWh, resulting in a monthly saving of 3301 kWh. The energy price considered is 0.25 €/kWh.
With power factor correction, €825 per month can be saved on energy dissipation costs charged to the transformer. These figures show how the implementation of power factor correction in the plant improves energy efficiency and reduces monthly costs.
THE ADVANTAGES OF POWER FACTOR CORRECTION FOR BUSINESSES
If saving money is the main reason for investing in power factor correction equipment, companies can reap further benefits. It is essential to understand how these solutions improve energy efficiency, reduce system currents and optimise energy consumption.
REDUCING ELECTRICAL LOSSES AND IMPROVING EFFICIENCY
Power factor correction reduces reactive power demand, ensuring more efficient operation of electrical systems. By minimising energy waste, companies can reduce their total energy demand, resulting in lower losses in transformers, cables and switchboards. This not only reduces electricity costs but also extends the lifepan of power distribution components by reducing overheating and energy dissipation.
INCREASED POWER AVAILABILITY AND LOAD CAPACITY
A poor power factor means that electrical circuits carry unneeded reactive power, limiting their ability to provide useful active power. By implementing a power factor correction capacitor system, companies can optimise load distribution, freeing up capacity within the existing infrastructure. This ensures efficient power distribution on the grid.
COMPLIANCE WITH UTILITY REGULATIONS AND TARIFF REDUCTIONS
Since most utility providers apply penalties for low power factor, companies that optimise power factor benefit from tariff reductions and lower demand charges.
ENVIRONMENTAL AND SUSTAINABILITY BENEFITS
By installing high-efficiency power factor correction equipment, businesses contribute to lower CO₂ emissions, aligning with global sustainability goals. Reducing unnecessary power consumption helps companies meet environmental standards and enhance their reputation for corporate responsibility.
CHOOSING THE RIGHT POWER FACTOR CORRECTION EQUIPMENT MANUFACTURER
When choosing a manufacturer of power factor correction equipment, it is crucial to consider factors such as:
- Quality and Reliability of capacitor banks.
- Scalability to meet future power demands.
- Compliance with local and international energy regulations.
- Integration with existing electrical infrastructure.
Ortea offers tailor-made solutions to improve power factor correction for businesses, ensuring that they benefit from increased efficiency, cost savings and regulatory compliance.
Investing in power factor correction is a strategic decision that improves electrical efficiency, extends equipment lifespam and reduces costs.
With advanced solutions from ICAR by Ortea Next, companies can optimise energy consumption and achieve long-term savings and sustainability benefits.
Would you like a customised assessment of your power factor correction needs? Contact Ortea today to find out how we can help your company maximise efficiency and reduce energy costs.
