How Power Factor Correction Works to Free Up Power (With Real-World Examples)

How Power Factor Correction Works to Free Up Power (With Real-World Examples)

June 12, 20254 min read

At Alpha Power Solutions, we often hear from businesses struggling to keep up with their power demands. As their operations expand, they quickly realise that their existing electrical supply can’t support new equipment or increased production. One effective way to address this problem is through Power Factor Correction (PFC).

PFC not only reduces electricity costs but also frees up capacity on supply transformers, allowing businesses to make the most of their existing power infrastructure. In this article, we’ll explain how PFC works, share real-world examples, and discuss why it’s often a smarter choice than upgrading your entire electrical system.

How Power Factor Correction Frees Up Capacity

To understand how PFC frees up capacity, it helps to know the difference between active and reactive power. In any electrical system, transformers provide both types of power:

  • Active power (kW): This is the real power that performs useful work, such as running machinery or lighting.

  • Reactive power (kVAR): This power is necessary to create magnetic fields in electrical equipment such as  motors, transformers, magnets, induction ovens, etc.

When a business’s power factor is low, it means the system is drawing a significant amount of reactive power from the grid. This reduces the capacity available for active power, effectively limiting the total load that can be supplied to a particular site.

By installing PFC equipment, the reactive power is supplied internally rather than being drawn from the grid. This means the transformer no longer needs to handle reactive power, freeing up capacity for more active power. In practical terms, this can increase a site’s power availability by 20% or more, depending on the uncorrected power factor.

Signs Your Business Is Running Out of Capacity

Often, businesses only realise they are running out of power capacity when they start experiencing operational issues. Here are some signs that indicate your system may be reaching its limit:

  • Frequent tripping of main circuit breakers: When too much equipment is running simultaneously, the protection system activates to prevent overload, disrupting production.

  • Inconsistent machine operation: Some businesses may implement manual load shedding, turning off certain machines to keep others running. While this keeps the power on, it limits productivity and efficiency.

  • Delayed production schedules: The inability to operate all machines at once can lead to production slowdowns, especially when multiple lines or processes are needed simultaneously.

  • Temperature issues: Overloaded transformers and cables can overheat, risking damage and costly repairs.

  • Growing frustration among management: Decision-makers see potential for growth but feel held back by power limitations, often without a clear solution in sight.

If you notice any of these issues, it may be time to consider PFC as a way to optimise your power use and support future growth.

Why PFC Is Better Than Upgrading Your Supply

When faced with capacity issues, many businesses initially consider upgrading their entire electrical infrastructure. This typically means:

  • Installing larger transformers

  • Upgrading medium voltage supplies

  • Replacing entire  low voltage distribution boards

While these changes do increase capacity, they come at a high financial and logistical cost. Not only does the installation require significant downtime, but obtaining permits and coordinating with utilities can also delay the process.

In contrast, PFC is a targeted solution that directly addresses the root cause of the capacity issue. Instead of increasing the supply, it reduces the amount of reactive power drawn, thereby freeing up existing capacity on the supply transformer(s). This makes it an efficient and cost-effective choice, especially when the additional power requirement is moderate.

Real-World Example: A Plastic Components Manufacturer

One of our clients, a manufacturer of plastic components, faced frequent power limitations. As their business grew, they continued adding new machines without considering the strain on their existing electrical system. Eventually, they reached a point where running all machines simultaneously caused frequent tripping of the main supply, due to overloading, impacting production.

The problem stemmed from a poor power factor of around 0.72. This meant their transformers were handling more reactive power than necessary, reducing the capacity available for active power. We installed a PFC system designed specifically for their setup, which raised their power factor to 0.99el.

The results:

  • Freed up 27% of power capacity

  • Enabled simultaneous operation of all machines

  • Supported further expansion without costly upgrades

  • Achieved an investment payback period of just three months

Instead of spending significantly on infrastructure upgrades, the manufacturer was able to increase production output almost immediately after installing the PFC system.

Immediate Results After PFC Installation

One of the key benefits of PFC is that its impact on capacity capacity is immediate. Unlike measures that take time to reflect in reduced electricity bills, the capacity improvement is evident as soon as the system is installed.

This means that the moment your PFC equipment is up and running, your transformers are relieved from handling unnecessary reactive power. You can start using more of your available capacity for productive, revenue-generating activities right away.

Unlock Your Plant’s Full Potential

For businesses facing power capacity challenges, PFC offers a practical and cost-effective solution. Instead of investing in major upgrades, you can optimise your current setup, support more machinery, and increase production without unnecessary delays or expenses.

If your plant is struggling with capacity issues, get in touch with Alpha Power Solutions. We’ll assess your current power factor and help you understand how PFC could benefit your operations. Contact us today to get started on unlocking your plant’s full potential.

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