Power Factor Correction

Reactive power is an undesirable side-effect of most common energy-using equipment which increases the load on the supply system and thus the charges that electricity distributors apply to you, the customer. Power factor correction equipment uses capacitors to generate the required reactive power locally rather than drawing it from the network, reducing the total load seen by the site’s electricity distributor and metering system without affecting the function of the site. The way in which this reduces the load on the network (and thus what you pay for) is demonstrated in the diagram below.

NO POWER FACTOR CORRECTION, POWER FACTOR = 0.70

 

 

 

 

 

WITH POWER FACTOR CORRECTION, POWER FACTOR = 0.95

 

 

 

 

 

 

 

The correct application of these systems can vary widely, requiring expert engineering to ensure an effective and long-lasting solution. Issues include whether static or automatic correction is needed, correction step sizes, optimal location, and harmonic mitigation. It is also vital to understand and review both the operating profile and energy-tariff structure of the site, which are part of the Energy NZ advantage. 

Installation of a typical automatic power factor correction unit can represent a capital cost of $10,000 – $50,000 in most cases, although the average payback period is generally around two years. In some instances the payback period can be less than a year. Furthermore, power factor correction is one of the most reliable savings a site can achieve in energy costs.

To find out how much you can save by improving power factor, contact us today for a free, no-obligation assessment.

Smaller Users

In the past, installing power factor correction at a retail or small commercial building has not been cost-effective because even the smallest traditional correction system costs several thousand dollars. However, after working with a great many customers for whom this cost would not be paid back in savings for many years, Energy NZ has specifically developed a new power factor correction system which is seeing these customers achieve simple payback periods of as little as 8 months. 

Contact us to find out whether this system or a standard alternative can reduce your electricity bills.