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How do it affect the whole system?
The power factor of an electrical system give an idea about the reception of reactif energy .
If the power factor is under 1,it mean that your system receive an reactif energy wisch is not consumed to do some energy working buy your machine,there is only the actif energy that is energy payed.It can be also the seign of presence of harmonics that affect the system and the other electric networks (when the power factor<cos phi),so it must instalation harmonics filter to managing the harmonics in this case.
In Tunisia,you get a bonus in your electrical bill if you surpass 0.9 in your cos phi (not power factor).
And more you surpass more you get bonus.
By definition power factor is (kw/kva). In phasor system its cosine of the angle between voltage and current. depending on the angle pf maybe positive or negetive, also pf can be consumed or deliverd it all depends on the system and its loads.
The most common equipments like transformers ,generators etc utilises principle of electromagnetic induction which results in a large inductive power factor in our system. These higher pf causes large current and most of the energy supplied (kv) is stored or lost as magnetic energy which will not be produced as out put(kw) but is essential for operation.
In theory pf should be one but in my expericene for utility its important that they keep their pf close to unity deepnding on their load characteristics
Power factor is the ratio of KW (true power) to the apparent power KVA
Power factor is a measurement of efficiency of the Electrical power, and show us what we generate and and what is delivered,
its idea value is to be unity
power factor differentiates between the Actual power and imaginary power.
KVA = Watts / PF
In High voltage measurements the term watts is rarely used, instead KVA is the term used.
KVA means that you are considering the actual power delivered plus the power being wasted in all kind of induction equipment installed (transformers, line induction, end user equipment, such as motors, etc).
The range of P.F is always less than or equal to 1 in ideal cases.
so an industry owner, there will be thousands of induction equipment installed. the target of the owner will be to have the overall P.F closer to 1 (By installing PF correction capacitor banks) otherwise the power supply company will put penalty against the owners.
to make an efficient power transmission and to reduce unwanted losses, the P.F must be kept closer to 1.