Powerfactor energy savings

Image via Wikipedia Powerfactor energy savings - also known as Demand Side Management

Energy consumption was brought into focus for industry when the Climate Change Levy (CCL) was introduced. There is a proven way to save energy costs and reduce this levy that large electricity users may be overlooking. While there are no tax benefits for installing efficient and effective power factor correction measures yet, the Government is to introduce Enhanced Capital Allowances (ECA) that enable the full cost of certain energy saving devices, when used in certain applications, to be written down against taxable revenue in the first year (Why power factor correction equipment was not included in the tax allowances introduced along with the Climate Change Levy is a complete mystery!). However the fact remains that by applying powerfactor correction methods, many large electricity consumers can reduce their electrical energy costs significantly.

What is Powerfactor?
In laymans terms the Powerfactor is the ratio of “useful power” to “total power” consumed by electrical equipment, the nearer to 1 this ratio is the better the efficiency ratio.

How much energy can I save using powerfactor correction technology?
This will depend on the current efficiency of the equipment, however documented cases of 40% and higher savings are not uncommon!

What type of equipment/plant/machinery is suitable for power factor correction savings?
Plant and equipment most likely to contribute to poor power factor are those requiring the creation of a magnetic field to operate, such as induction motors, including variable frequency drive motors, battery chargers, AC and DC converters, air conditioners, refrigeration, voltage surge suppression, most types of lighting systems.

How does it actually work, whats involved?
Generally by installing suitably sized switched capacitors and control units into the system, the Powerfactor is improved and the efficiency value becomes nearer to 1 thus reducing wasted energy and improving the efficiency of a plant.

How do I know if this will benefit our company?
In the first instance a site survey will be required from a specialist company, this survet will highlight potential savings and also provide a cost for fitting the equipment - bear in mind most installations will recoup installation costs in first year!

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Tags: AC power, Climate Change Levy, Energy Conservation, Energy Efficiency, Power-factor correction