[CATALOGUE PFC-SFC]

POWER FACTOR
CORRECTION
INDUSTRIAL SWITCHGEAR & AUTOMATION SPECIALISTS

A component of nhps
green star solution...

www.nhp.com.au

POWER FACTOR CORRECTION

Power Factor - What does it mean?
Where open electricity markets have been introduced, the supply of electrical energy
becomes competitive between the supply utilities. Although private distribution companies
are obligated to run a profitable and successful business, they are also committed to
maintain the quality of supply at a high level. Competition in an open electricity market
creates new opportunities for even better quality of supply of electricity.
One very important aspect of improving quality of supply is the control of power factor.
Low power factor means poor electrical efficiency. The lower the power factor, the
higher the apparent power drawn from the distribution network. This means that the
supply company must install larger generation capacity, larger size transmission lines
and cables, transformers and other distribution system devices, which otherwise would
not be necessary. This results in a much higher capital expenditures and operating costs
for the Electricity Supply Company, which in many cases is passed on to the consumer
in the form of higher tariff rates.
This is the main reason behind why the Electricity Supply Companies in modern
economies demand reduction of the reactive load in their networks via improvement of
the power factor. In most cases, special reactive current tariffs penalize consumers for
poor power factors.
Electrical load types
Loads on an electrical distribution system can be categorized as resistive, inductive and
capacitive. Under normal operating conditions certain electrical loads (e.g. transformers,
induction motors, welding equipment, arc furnaces and fluorescent lighting) draw not
only active power (kW) from the supply, but also inductive reactive power (kVAr).
All inductive loads require active power: kW to actually perform the work, and reactive
power (kVAr) to maintain the electromagnetic field. This reactive power is necessary for
the equipment to operate but it imposes an undesirable burden on the supply.

No Power Factor Correction

With Power Factor Correction

Cos = 0.95

Cos = 0.75

1000 kW
Inductive load

1000 kW
Inductive load

Power utility
supplying true and
reactive power to
consumption

Power utility supplying

true and reduced
reactive power only
after capacitor bank
installed. Reactive
energy now supplied
by capacitors

Capacitor bank
compensating
553 kVAr

POWER FACTOR CORRECTION

1053 kVA
(1464 A)

Cos = 0.75

Corrected load
329 kVAr

1333 kVA
(1855 A)

Uncorrected load 882 kVAr

POWER
TRIANGLE

Load saving of 553 kVAr

Load reduction of
281 kVA (391 A)

The power factor of a load is defined as the ratio of active power to apparent power, i.e.
kW divided by kVA and in mathematical terms is referred to as cos . The closer cos is
to unity, the less reactive power is drawn from the supply. Power Factor (cos ) = Active
Power (kW) / Apparent Power (kVA).

Cos = 0.95
1000 kW

Please refer to the Cost Savings of a Power Factor Correction Unit to see how the above
example works in with a practical situation.

Factors that could degrade electricity supply quality

Harmonics
The presence of harmonics in the waveform of the network voltage can be attributed to
various causes such as rectifiers, variable speed drives, thyristors, saturated transformer,
arc furnaces, etc.
The main problems caused by harmonics are:
Interferences in telecommunications systems and equipment.
Distortion of the Electricity Supply Voltage
Erratic operation of control and protection relays
Failures in transformers and motors due to overheating caused by core losses.
If the harmonic power is significant, i.e. THVD greater than 7 %, THID greater than
40 %, this may result in overvoltages and overloads, which may lead to the failure of the
capacitors, circuit breakers, contactors etc.
Resonance
Amplification of both voltage and current at the same time will occur if the resonant
frequency is close or equal to one of the harmonic frequencies present in the distribution
system.
The power feeder (overhead line or underground cable) have an inductive impedance. By
putting a capacitor in parallel with the load (for Power factor correction) it is possible for
the combined system to have a resonance condition.
Cable Losses
As the power factor of a three phase system decreases, the current rises. The heat
dissipation in the system rises proportionately by a factor equivalent to the square of
the current rise.

POWER FACTOR CORRECTION

Power Factor Correction and Variable Speed Drives
As a general rule, standard power factor correction systems should not be used when
there are Variable Speed Drives (VSDs) connected to the same point of connection
unless some precautions are taken.
Two situations arise when using power factor correction systems:
1. Installation of the power factor correction between the VSD and the motor, and
2. Installation of the power factor correction on the line side of the VSD
In the first case, power factor correction should not in any case be connected between
the output of the VSD and the motor. In typical DOL situations, some installations will
have a fixed KVAR value of capacitors sized to counteract the motors inductive reactance
hence increase the power factor on the supply line. Be cautious when replacing DOL
components with a VSD if there are PF correction capacitors connected to the motor
remove them as premature damage to the inverter and motor will occur due to the high
frequency switching voltage occurring on the output of the inverter. Most capacitors are
not designed to withstand the high switching currents produced by VSDs.
In the second case, power factor correction can be installed on the line side of the VSD
but only under certain conditions. In all cases, VSDs produce a certain level of harmonic
distortion back into the main supply. This harmonic distortion is in the form of both
THID (total harmonic current distortion) and THVD (total harmonic voltage distortion) and
the levels of this THD is dependant upon the size of the drive, the supply transformer
impedances, short circuit levels, primary and secondary voltage levels plus cable lengths
and cable size.
Because of the inherent harmonic distortion produced by the VSDs, the capacitors within
power factor correction equipment will cause any THD to be amplified which results
in higher voltage impulses applied to the input circuits of the inverter and the energy
behind the impulses is much greater due to the energy storage of the capacitors. This
will in turn prematurely damage the input rectifier of the VSD causing costly repairs.
In addition, the increased current and voltage transients on the line side are passed
back through the PFC capacitors causing increased operating voltage and current,
which produces higher operating temperatures and may cause premature failure of the
capacitors.
By reducing the effects of THVD and THID through the use of input reactors, harmonic
filters, active harmonic filtering on the line side of the VSD or using a 12-pulse rectifier
(or even better an Active Front End solution), this reduces the effect of the transient
impulses which can damage both the VSD and the PFC capacitors. Ensure that the
capacitors used in the PFC system have a harmonic tolerance level greater than the
harmonic distortion produced by the VSD installation.
Power Factor Correction and Soft Starters
Individual or Static power factor correction capacitors can be used with soft starters
provided they are installed on the input side of the soft starter and switched via a
dedicated contactor only after the motor has reached full speed. The contactor should
be AC6 rated for the motor full load current.
Automatic or Bulk power factor correction systems make use of a power factor controller
to monitor changing power factor and automatically switch capacitors as needed. When
used with a soft starter the automatic switching of capacitors should be inhibited until
the motor is running at full speed.
When a soft starter is installed in close proximity to a power factor correction capacitors
(less than 50m) and used without a main contactor, the switching of capacitors whilst
the soft starter is not passing motor current can also lead to premature starter failure.
The use of a main contactor is therefore recommended when;
Multiple soft starters are installed along with static power factor correction capacitors.
A soft starter is installed along with a bulk power factor correction system.

Connecting power factor correction capacitors to the output of a soft starter will cause
equipment failure due to severe over voltage. This over voltage is created by resonance
between the inductance of the motor and the power factor capacitance.

POWER FACTOR CORRECTION

Solutions
Power factor correction capacitors
A poor power factor can be improved by adding power factor correction capacitors to
the plants distribution system. Correction capacitors provide needed reactive power
(kVAr) to the load. Therefore, the Electricity Supply Company is freed from having to
supply it.
Power factor correction capacitors reduce the total current supplied by the Electricity
Supply Company to the load and as a result the distribution system capacity is
increased.
Capacitor ratings
Power factor correction capacitors are rated in electrical units called VAr. One VAr is
equivalent to one volt-ampere of reactive power. VAr is the unit of measurement for
indicating just how much reactive power the capacitor will supply.
Filter reactors
In most cases it is necessary to reduce the effects of the harmonic currents. One way
of reducing harmonic currents is to install an inductance (filter reactor) in series with the
capacitor.
The filter reactors protect the electrical installations and equipment but it does not
eliminate the harmonics.
The reactor value should be calculated and designed in order to reduce the resonant
frequency of the circuit to a value lower than that of the lowest harmonic in the system.
A capacitor equipped with a filter reactor is protected from harmonics regardless of the
layout of the network to which it is connected. Except in some cases when switching in
steps the inductance and capacitance values could add up to equal one of the harmonic
frequencies in the system causing resonance.
Power loss reduction
Distribution system losses are also reduced through power factor correction by reducing
the total load current in the system.
Voltage improvement
Power factor capacitors decrease distribution system voltage drops and fluctuations
during the start of large inductive loads.
Where should the power factor correction equipment be installed
After determining the required size capacitor in kVAr, the next step is to decide on the
location for installation of the capacitor bank.
It is difficult to set definite guidelines for location of capacitor installation. However, the
following general rule should be kept in mind: As close as possible to the load to be
compensated.

POWER FACTOR CORRECTION

Reactive compensation systems
Centralised compensation
Centralised compensation by means of an automatic capacitor bank with automatic
regulation offers the most simple and economical solution.
The reactive power is subdivided in a number of capacitor steps that can be connected
independently. A reactive power controller continuously measures the needs of the
installation and connects or disconnects the capacitors until the target power factor is
achieved.
The advantage of this system is that the total capacitor power is smaller than the
sum needed for individual compensation. Therefore this system is a good economical
solution.
Group compensation
Several inductive loads can be grouped together and equipped with a common capacitor
bank. This system usually applies for users that have their own installations with
distribution transformers and high voltage power lines/cables.
The reactive power that is consumed by the transformers is compensated by the
permanently connected capacitors to the secondary side of the transformers.
Individual compensation
This type of compensation is applied to motors, transformers, and in general to loads
with a high time of operation.
Capacitors are directly connected in parallel to the terminals of the loads.
This system minimizes the reactive current circulating through the installation, enabling
the use of smaller switchgear and power lines or cables, which means a lower capital
expenditure for new installations.
In the case of existing installations, utilising capacitors for power factor correction will
increase the maximum apparent power that can be supplied to the installation. However
great care must be taken in selecting the size of capacitor because of the risk of self
excitation of the electric motor.
Power factor correction control relay
When selecting a power factor correction relay the following main functions should be
considered:
Measurement of the required reactive power and control the capacitor switching
according to the power factor desired or pre-set value.
Indication of power factor, preset parameters and specified installation data.
Disconnect the capacitors when a system voltage drop occurs, this will prevent
significant overvoltages in the installation and the subsequent damage to switchgear
insulation.
Allow manual control.
Provision for a visual display of signal lamps for monitoring the number of capacitors
steps switched into the system.
Possible implementation into a building management system

POWER FACTOR CORRECTION

Maintenance of capacitor banks

Maintenance of a capacitor bank doesnt require much time or energy. However it is
important that regular inspections be carried out. This will help prevent early failure and
pick up any fault. An inspection routine would include the following:
Check and clean filters
Ensure tightness of all electrical connections
Ensure all fuses are not damaged
Ensure all discharge resistors are operational
Ensure all contactors are operational
Remove all dust and deposit buildup
Tong test capacitor current
Cost savings of a power factor correction unit.
Power factor correction is an investment that helps to improve companys profit
performance.
NSW, WA, and Victoria have existing penalty structures in place for customers that
operate on a poor power factor.
The following is an example to illustrate the savings by installing power factor correction
equipment.
Let us assume that the penalty is 37.57 cents per day per kVAr, for the kVAr necessary
to improve the power factor to 0.95 lagging.
1000 kW load at a PF of 0.75 = 882 kVAr
1000 kW load at pf of 0.95 = 329 kVAr
The extra kVAr drawn from the supply is:
882 kVAr 329 kVAr = 553 kVAr
553 x 37.57 = $207.76 penalty per day
Assume the Power factor correction unit will cost installed about $60 per kVAr
Therefore 600 kVAr x $60 = $36,000
Payback period = $36000 divided by $207.76 = 173 days or about five to six months.
In about 5 to 6 months the cost for power factor correction is recovered and any further
penalties are avoided for the life of the electrical installation.
Any further savings then become profits that add to the companys bottom line.
Note: This example is for illustration purposes only. Actual savings will vary from
installation to installation.

AUSTRALIA
www.nhp.com.au
VICTORIA
MELBOURNE HEADQUARTERS
43-67 River Street
Richmond Victoria 3121
Telephone +61 3 9429 2999
Fax +61 3 9429 1075

NEW SOUTH WALES

SYDNEY
30-34 Day Street North
Silverwater New South Wales 2128
Telephone +61 2 9748 3444
Fax +61 2 9648 4353

Email mel-sales@nhp.com.au

Email syd-branch@nhp.com.au

NATIONAL DISTRIBUTION AND

MANUFACTURING CENTRE
104-106 William Angliss Drive
Laverton North Victoria 3026
Telephone +61 3 9429 2999
Fax +61 3 9368 2997

NEWCASTLE
575 Maitland Road
Mayfield West New South Wales 2304
Telephone +61 2 4960 2220
Fax +61 2 4960 2203

Email mel-sales@nhp.com.au

TASMANIA
HOBART
2/65 Albert Road
Moonah Tasmania 7009
Telephone +61 3 6228 9575
Fax +61 3 6228 9757
Email tas-sales@nhp.com.au

QUEENSLAND
BRISBANE
16 Riverview Place
Murarrie Queensland 4172
Telephone +61 7 3909 4999
Fax +61 7 3399 9712
Email bris-branch@nhp.com.au

TOWNSVILLE
62 Leyland Street
Garbutt Queensland 4814
Telephone +61 7 4779 0700
Fax +61 7 4775 1457
Email tsv-branch@nhp.com.au

ROCKHAMPTON
14 Robison Street
Rockhampton Queensland 4701
Telephone +61 7 4927 2277
Fax +61 7 4922 2947

Email ncl-branch@nhp.com.au

SOUTH AUSTRALIA
ADELAIDE
36-38 Croydon Road
Keswick South Australia 5035
Telephone +61 8 8297 9055
Fax +61 8 8371 0962
Email adl-branch@nhp.com.au

WESTERN AUSTRALIA
PERTH
38 Belmont Ave
Rivervale Western Australia 6103
Telephone +61 8 9277 1777
Fax +61 8 9277 1700
Email per-branch@nhp.com.au

NORTHERN TERRITORY
DARWIN
3 Steele Street
Winnellie Northern Territory 0820
Telephone +61 8 8947 2666
Fax +61 8 8947 2049
Email dar-branch@nhp.com.au

Email rkh-branch@nhp.com.au

NEW ZEALAND
www.nhp-nz.com

TOOWOOMBA
Cnr Carroll St & Struan Crt
Toowoomba Queensland 4350
Telephone +61 7 4634 4799
Fax +61 7 4633 1796

AUCKLAND
7 Lockhart Place
Mt Wellington Auckland
Telephone +64 9 276 1967
Fax +64 9 276 1992

Email too-branch@nhp.com.au

Email sales@nhp-nz.com

CAIRNS
2/1 Bramp Close
Portsmith Queensland 4870
Telephone +61 7 4035 6888
Fax +61 7 4035 6999

CHRISTCHURCH
85 Gasson Street
Sydenham Christchurch
Telephone +64 3 377 4407
Fax +64 3 377 4405

Email cns-branch@nhp.com.au

Email sales@nhp-nz.com

ELECTRICAL ENGINEERING PRODUCTS PTY LTD

A.B.N 84 0 0 4 3 0 4 8 1 2
Catalogue - PFC-SFC 11/07
Copyright NHP 2007