Economics of Power Factor Correction © 2013 Eaton. All rights reserved. Understanding Utility Bills • Kilowatt hours (kWH) – kWH consumption is measure of electrical energy that has been used during the billing period. Consist of a unit rate times accumulated kWH reading from the meter. • Fuel charge adjustment – Monthly charge based on the cost of fuel used to produce power each month. Typically a unit charge times kWH. • Kilowatt demand – Based on maximum recorded kW demand interval for the month and represents how much a utility has to provide in terms of transformers, wire and generation capability. Typically a unit charge times max kW demand interval for the month. • Power factor penalties – Charged by some utilities. Usually based on falling below a minimum PF level. Penalties vary widely among utilities. © 2013 Eaton. All rights reserved. 2 What is Power Factor? Inductive loads (motors) require two kinds of power • Real Power (kW) – that actually performs the work • Reactive Power (kvar) – that maintains the electromagnetic field Real power(kW) 𝜃 Reactive power(kvar) Apparent power(kVA) • Apparent Power (kVA) – total power, vector sum of kW and kvar Real power kW = cos 𝜃 Apparent power kVA Expressed in a percentage or decimal number (95% or 0.95) and also with an added “Lag” or “Lead” term. Power Factor is a measure of efficiency = © 2013 Eaton. All rights reserved. 4 PF Correction kW =1000 kvar=150 kVA =1010 1000 kW load@ @.99 .8 load lagging PF PF kvar=750 kVA =1250 600 kvar Add 600 kvar capacitor • Present load at 1000 kW and 80% lagging PF • Adding capacitors improves PF by providing leading kvar. • Capacitors cancel the effects of the lagging kvar required by inductive loads. PF improved to 99%. • Use capacitors to correct PF to desired value based on utility penalties © 2013 Eaton. All rights reserved. 5 Typical PF by Industry and by Operation Industry Auto parts Brewery Cement Chemical Coal mine Clothing Electroplating Foundry Forge Hospital Machine manufacturing Metalworking Office building Oil-field pumping Paint manufacturing Plastic Stamping Steelworks Textile Tool, die, jig Power Factor 75-80 76-80 80-85 65-75 65-80 35-60 65-70 75-80 70-80 75-80 60-65 65-70 80-90 40-60 55-65 75-80 60-70 65-80 65-75 60-65 Operation Air compressor: External motors Hermetic motors Metal working: Arc welding Arc welding with standard capacitors Resistance welding Machining Melting: Arc furnace Inductance furnace 60Hz Stamping: Standard speed High speed Spraying Weaving: Individual drive Multiple drive Brind © 2013 Eaton. All rights reserved. Power Factor 75-80 50-80 35-60 40-60 40-60 40-65 75-90 100 60-70 45-60 60-65 60 70 70-75 6 HV and LV Recommendations Low Voltage capacitors • Applicable for secondary (LV) or primary (HV) metering • located closest to inductive load for optimum loss reduction and voltage boost • Can be switched with the load • Solutions for harmonic issues can be more complex Medium Voltage capacitors • Applicable for primary metering on HV side of the transformer • Less expensive installed cost per kvar • Simplifies solutions for harmonic issues © 2013 Eaton. All rights reserved. 8 Medium Voltage Solution Options • Pole Mounted Rack • Group fuse protection • Fixed or switched, single or multi step • Lowest cost solution • Open Rack Design • Individual fuse protection • Unbalance protection scheme required • Fixed or switched, single or multi step • Fenced area required • Moderate cost solution • Metal Enclosed • Current limiting fuses or fusesless designs • Fixed or switched, single or multi step • Reduced space requirements, indoor or outdoor • Fully assembled and tested • Most costly solution © 2013 Eaton. All rights reserved. 9 Savings Analysis Multiplier kVAR charge kVAR added Month Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 0.39523 $2.60 2000 Max kW Max kvar Base kvar1 Excess kvar2 Penalty3 4020 1961 1589 372 $ 968 3948 3296 1560 1736 $ 4,513 4011 2391 1585 806 $ 2,095 4276 1869 1690 179 $ 465 4426 3536 1749 1787 $ 4,645 4383 3645 1732 1913 $ 4,973 3632 3281 1435 1846 $ 4,798 3937 3344 1556 1788 $ 4,649 3883 2859 1535 1324 $ 3,443 3891 2394 1538 856 $ 2,226 3724 2891 1472 1419 $ 3,690 3616 1446 1429 17 $ 44 Total $ 36,509 1 Base kvar = Max kW x Multiplier 2 Excess kvar = Max kvar - Base kvar New kvar -39 1296 391 -131 1536 1645 1281 1344 859 394 891 -554 3 Penalty = Excess kvar x kvar Charge • Power factor penalty = $2.60/kvar for all excess kvar • Excess kvar = Max kvar - (Max kW for the Billing Period x .39523) • Annual savings = $36,000 • Possible solution - 2000 kvar metal enclosed bank. Could range from $30-90K depending on steps. Payback 1-3 years. © 2013 Eaton. All rights reserved. 10 Harmonics • Harmonic producing loads can lead to Fundamental • Capacitors fuse operations and failed capacitors • Transformer heating Distorted Waveform • Motor heating 3rd Harmonic 0 • VFD malfunction 5th Harmonic • Increased neutral currents • Common harmonic producing loads • Power electronic equipment (drives, rectifiers, inverters, computers, etc.) • Rotating machines (generators, motors) • Iron saturating devices (transformers) • Arcing devices (welders, arc furnaces, florescent lights, etc.) • Harmonic Study should always be performed in conjunction with power factor correction capacitors when there are significant sources of harmonics in the system. © 2013 Eaton. All rights reserved. 11 Engineering Service’s Harmonic Analysis • Do field measurements • This is a recommended but optional step to benchmark system • Develop system model • Transformers, lines, loads, harmonic sources, switches • Power Flow analysis to determine • Reactive power needs • Location of capacitors • Capacitor bank ratings (steps) • Harmonic analysis: • Impact of capacitors on harmonic performance • Analyze alternatives to comply with harmonic distortion requirements © 2013 Eaton. All rights reserved. 12 Total Solutions Process Pre Installation Installation Support Maintenance • • • • • • • • • • • • • • Utility bill analysis PF correction Harmonic studies Filter design Acceptance testing Installation Verify protection Commissioning Training © 2013 Eaton. All rights reserved. Capacitor testing Switch testing Control testing Thermography Service contracts 13 © 2013 Eaton. All rights reserved. 14