Power Factor Correction

Power Factor Correction, a process whereby we install a Power Factor Correction Unit. Power Factor or (PF) is a measure of how your business uses its electricity.

By comparing the Apparent Power (kVA) delivered to your switch board to
the Active Power (kW) used by your equipment we can calculate your Power

In an electric power system, a load with a low power factor draws more
current than a load with a high power factor for the same amount of useful
power transferred. The higher currents increase the energy lost in the
distribution system, and require larger wires and other equipment. Because
of the costs of larger equipment and wasted energy, electrical utilities will
usually charge a higher cost to industrial or commercial customers where
there is a low power factor.

Reduce your capital expenses up to 30%

Optimize the size of your electrical system, avoid over-sizing, and limit
redundant capacity.

Power factor correction brings the power factor of an AC power circuit closer
to 1 by supplying reactive power of opposite sign, adding capacitors or
inductors that act to cancel the inductive or capacitive effects of the load,

Network operators like Energex & Ergon are shifting from KW demand billing
to KVA and then KVAR billing over the next 2 years. This won’t mean much
for the average person but when we draw power from the grid there are 2
types of power being Real Power and Reactive Power. We consume Real
Power when doing every day normal activities like lighting and heating or
cooling and the Reactive Power is the energy stored in the load and then
returned to the source. The total demand on the network is the total of the
Real Power and the Reactive Power.

Reduce utility billing penalties and lower operating expenses up to 10%

Good power factor can lower power bills and reduce power losses in
transformers and conductors.

The ratio of difference between the Real Power and the Total Power is known
as the Power. If you have lots of heavy load appliances, high bay lights,
pumps, motors, welders. cool-rooms and or similar, there could be a
possibility you have a low power factor as these appliances draw Reactive
Power. Other transformer based appliances like laptops and computers also
have high Reactive Power draw. The Real power is what we are currently
billed (KW) and the networks have already started transitioning to KVA billing
which is effectively the Total Power taken from the grid. The networks will
also start billing for excessive KVAR consumption

Improve power system and 3-phase equipment reliability
up to 18%

Boost power quality to improve your business performance by
reducing unplanned outages and the reliability of electrical devices
across your entire power infrastructure.

Understanding what this means

Let’s say your appliances are using 7KW of Real Power but draw a total of
10KVA of Total Power from the grid which means you have a Power Factor of
0.7 at the property. This means you are drawing 7KW of Real Power which is
what you will see on your power bill and 3KVAR of Reactive Power totalling

The problem the energy companies have here is that you are getting a lot of
essentially free power and more importantly, their infrastructure of the local
electricity grid has to be capable of delivering the full 10KVA of power

If you were to install a Power Factor Correction Unit we can (as an example)
improve your power factor to 0.9 which would reduce the total power
demand on the network from 10KVA to 7.7KVA with 7KW of Real Power and
0.7 of Reactive Power (KVAR). Immediately we have reduced the total
demand on the network infrastructure by 23% and the network are only
giving away 0.7KVAR of Reactive Power as opposed to 3KVAR.

How does this look financially? Currently assuming $20 per KW Demand
Charge you would receive a power bill of $140 ($20 x 7KW). By switching to
KVA billing you will be charged $200 (10KVA x $20). Furthermore, you can
expect to pay a minimum of $4 per KVAR which in your current circumstance
is $12 (3KVAR x $4). You can see the difference is substantial therefore it is
imperative to have a good Power Factor on site.

Expert, single-sourced, end-to-end solutions

Engineering services

From electrical system testing and troubleshooting that analyses and
identifies problem areas, through design conforming to applicable standards,
development, and maintenance of your low and medium voltage PFC
solution, OTI Power has everything you need.

Installation and commissioning

Expert installation and commissioning services provide fast integration with your systems and enable you to quickly attain maximum benefits from our modular range of PFC equipment.

Comprehensive product range

With a full range of power factor correction equipment spanning controllers to capacitor banks.

Quality and long life

PFC products and services from OTI Power are custom engineered with quality and a philosophy of continuous improvement built in.