Electricity costs are among the top five operating expenses incurred by most businesses. Power Factor Correction can reduce your monthly costs by up to 20%.
As managers and business owners, we need to focus on the long-term profitability of our organisations. Electricity costs are a substantial monthly overhead cost for most businesses but more specifically in the manufacturing industries. With electricity tariffs expected to increase well above the inflation rate for the foreseeable future (Eskom has been awarded a tariff increase of 15.63% effective 1/4/21), businesses must take the necessary steps to improve energy efficiency and reduce waste.
To plan and mitigate risk, companies need to look at what can be done to reduce costs and be prepared for future electricity tariff increases. Reviewing how your operations and electrical equipment are running and optimising their efficiency is a first step in ensuring cost reduction and increased profitability.
How can Power Factor Correction assist your business?
By reducing electricity costs and overall improvement of your power efficiency. What is power factor correction? Simply, it is the process of improving a low power factor present in a power system by installing Power Factor Correction (PFC) equipment.
The pay-back period of an investment in a well-designed power factor correction system is usually between 3 to 18 months. Power factor correction equipment, of good quality, has a life expectancy of at least ten years. The net benefit of a PFC system is substantial, and it has a significant impact on the viability and profitably of any business.
Advantages of Power Factor Correction
There are four critical advantages of utilising PFC within your business;
- Savings on your electricity bill
Power factor correction eliminates penalties on reactive energy, decreases maximum demand charges, and reduces power losses generated in the installation transformers and conductors.
- Increased available power
Fitting PFC equipment on a supply transformer’s low voltage side increases the power available to the electrical installation. A high-power factor optimises an electrical installation by allowing better use of the components.
- Reduced installation size
Installing PFC equipment allows conductor cross-section to be reduced, as less current is absorbed from the grid by the compensated installation for the same active power.
- Reduced voltage drops
Installing capacitors allows voltage drops to be reduced from where the PFC device is connected, preventing network overload.
Specific industries benefit more from a Power Factor Correction intervention than others due to their business’s specificity and their electrical power needs. If you fall within the below industries (typically industries making use of many motors), we strongly advise you to consider speaking to our experts’ team.
- Any form of milling
- Metal fabrication
- Plastic: extrusion and recycling,
- FMCG industries,
- Industries using
- Stamping machines
Proof in investing in the right equipment and processes
A project we undertook in early 2017 involved a client who manufactures plastic bottles. He reached out to us, and we installed a 300 kVAr Power Factor Correction Panel in his plant. The customer invested R 190,000 in this project which paid for itself in 11 months. To date, this customer has saved close to R 830,000 through our energy efficiency intervention.
Speak to the experts
Alpha Power Solutions can assist you if you are looking for a more sustainable and profitable future. We are experts in Power Factor Correction & Harmonic Filtration for over 30 years. Alpha Power Solutions was established in South Africa in 2007 to better serve the South African market through the supply, installation and servicing of power factor correction and harmonics filtration equipment.
We combine innovation, technology, expertise and superior quality to offer tailor-made solutions. In optimising the power factor of your business for long-term benefits, profitability and peace of mind! We are here to implement your power factor correction requirements.
As a corporate member of the Southern African Association for Energy Efficiency Confederation (SAEEC), an associate member of the Electrical Contractors Association of South Africa (ECASA) and with a Tier 1 Energy Services Company (ESCo) recognition level with the South African National Energy Development Institute (SANEDI), we are in the best position to give you and your business the energy efficiency knowledge and savings you need. Contact us for any questions you have or further questions we have not covered here.