CanyoureallyreducekVAbillingafterinstallingpower

capacitors?

Can you really reduce kVA billing after installing power capacitors? (Photo credit: E. Csanyi)

Stubbornfactoryowners//
ThistechnicalarticleIdedicatetostubbornfactoryownerswhostilldontbelieveanddontwant
tospendthemoneyonoptimizingthefactorycosts.Notallofthemarelikethat,butthemostof
themnotmuchelectricallyeducatedare.So,letsstartwithexplaining.
Thefactisthatpowercapacitorsprovidemanybenefits,andamongthem//
Reducedelectricutilitybills
Increasedsystemcapacity
Improvedvoltage

Reducedlosses

Reducedutilitybillsisnotanimagination//
Yourelectricutilityprovidesworking(kW)andreactivepower(kVAR)toyourplantintheformof
apparentpower(kVA).
Whilereactivepower(kVAR)doesntregisteronkWdemandorkWhourmeters,theutilitys
transmissionanddistributionsystemmustbelargeenoughtoprovidethetotalpower.Utilities
havevariouswaysofpassingtheexpenseoflargergenerators,transformers,cables,switches,
andthelike,alongtoyou.

Asshowninthefollowingcasehistories,capacitorscansaveyoumoneynomatter
howyourutilitybillsyouforpower.

kVAbilling
Incaseyoudidntknow,theutilitymeasuresandbillseveryampereofcurrent,including
reactivecurrent.Letsobservetheoptimizingcostsinthefollowingtwocases,butbeforethis,
pleasejumpandreadwhatscommonforbeermugandpowerfactor?Youreyeswillopen

Case1//
Assumeanuncorrected460kVAdemand,480V,threephaseat0.87powerfactor(normally
good).
Billing:
$4.75/kVAdemand
Correctto0.97powerfactor
Solution:

kVApowerfactor=kW
4600.87=400kWactualdemand
kW=kVAPF
400=412correctedbillingdemand0.97
FromTable1,kWmultipliers,toraisethepowerfactorfrom0.87to0.97requirescapacitor:
Multiplierof0.316xkW
0.316x400=126kVAR(use140kVAR)
Uncorrectedoriginalbilling:
460kVA$4.75=$2185/month$1957
=$228/monthsavings12
=$2736annualsavings
Correctednewbilling:
412kVA$4.75=$1957/month
140kVAR,480Vcapacitorcost:$1600(installationextra).

Thiscapacitorpaysforitselfinlessthaneightmonths.

Case2//
Assumethesameconditionsexceptthat:
400kWat87%=460kVA
400kWat97%=412kVAcorrectedbilling
kVAdemandcharge:
$1.91/kVA/month(112,400kWh/monthenergyconsumed)
Energycharge:
$0.0286/kWh(first200kWh/kVAofdemand)
$0.0243/kWh(next300kWh/kVAofdemand)
$0.021/kWh(allover500kWh/kVAofdemand)
Uncorrected:
460kVA$1.91=$878.60$786.92
$91.68savingsindemandcharge

orrected:
C
412kVA$1.91=$786.92
Uncorrectedenergy:
kWh=112,400
460200=92,000kWh
at0.0286=$2631.20
460300=138,000
butbalanceonly=20,400
at$0.0243=$495.72
$2631.20+$495.72
$3126.92uncorrectedenergycharge
Correctedenergy:
kWh=112,400
460200=82,400kWh
at0.0286=$2356.64
460300=123,600
butbalanceonly=30,000
at$0.0243=$729.00
$2356.64+$729.00
$3085.64correctedenergycharge
$3126.92$3085.64
$41.28savingsinenergychargeduetoratecharge
(9600kWhinfirststepreducedby$0.0043)
Thisisnotareductioninenergyconsumed,butinbillingonly.
$41.28energy$91.68demand
$132.96monthlytotalsavings12=$1595.52

A130kVARcapacitorcanbepaidforinlessthan14months.

Table1//

MultiplierstoDetermineCapacitorKilovarsRequiredforPowerFactorCorrection

Table 1 Multipliers to Determine Capacitor Kilovars Required for Power Factor Correction

Installingacapacitorbank(VIDEO)

Reference//Powerfactorcorrection:aguidefortheplantengineerABB