Power factor correction kvar policy in countries

May 7th, 2009 | Posted in Energy Efficiency - kvar, Power quality
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I want to share with you information about regulations and policies in different countries about : are penalty levels specified, which levels ?

world kvar penalties

world penalties : Germany, Austria, Canada, Spain, France, Portugal, ... ?

Most of people know the main benefits of power factor correction
  • Increase the power availability or reduce the size of the electrical installation,
  • reduce losses and as a consequence contribute to the reduction of CO2 emissions,
  • make saving on energy bill when penalties are applied.

From my point of view, charge the reactive power in the electricity billing is the best way to push power factor correction, because it gives a fast return on investment.
I found information regarding the reactive power billing policy in some 16 countries:
Germany, Austria, Canada, Spain, France, Portugal, Baltics, Roumania, Russia, UK, USA, Thailand, China, Australia

you can have a look to this xls file and you can complete it  for the countries you know by writing a Comment below … and i will then come back with an updated table

And I’m really surprised how huge is the difference between the countries and between the utilities in some countries.

Working at Schneider-Electric, i can also advise you to use the technical information given in the Electrical Installation Guide, chapter L : a good overview about & power factor correction
example of topics covered :

  • Why to improve the power factor?
  • How to improve the power factor?
  • How to decide the optimum level of compensation?
  • Example of an installation before and after power factor correction

Jacques Peronnet

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Comment(s) to “Power factor correction kvar policy in countries”

  1. endar says:

    it is nice information about PF. thanks

  2. pranav says:

    In countries like India, where there are no charges for reactive power at consumer level, I think utilities should install those meters than can measure reactive power also. Only then consumers will try to improve the power factor of their loads.

  3. David Berger says:

    In ISRAEL there is a penalty for under 0.92 for low voltage consumers and under 0.90 for hi-voltage consumers. It is checked monthly and the penalty is 0.1% (of the electric bill) for every 0.001 deviation.

  4. Heinz R. says:

    I am an Electrical Engineer in the USA and I don’t understand your Comments.

    1) Electrical rates in the USA do not vary by State, they vary by a) Power company, b) and the type of consumer – for example, residential, industrial or commercial, and even within these there are several types of rates. One power company may supply power to several States or there may be several power companies in one State. Furthermore, rates often vary by the amount of power consumed, the time of day and often the season. Only very rarely are poor power factor penalties charged to residential users. Lastly, electric rates are not set by the States but by the power companies under the oversight and approval of the responsible Public Service Commission.

    2) What do you mean with your $3 per KVAR comment? Actually, the most common way that power companies impose the power factor penalty is by charging for KVA-HRs used rather than KW-Hrs.

  5. andery says:

    Why do You think that Russia don’t have a penalty? They have. I live in Ukraine and we also have a penalty. I don’t know what is the price of reactiv power in our country, but now almost every new building with power over 50kWatt has а reactive power compensation. cos phi have to be near 0.95.

    Sorry for my bad english.

  6. Johnya says:

    I didn’t understand the concluding part of your article, could you please explain it more?

  7. Binguu says:

    I’m looking forward to getting more information about this topic, don’t worry about negative opinions.

  8. tarkeshwar mahto says:

    thanks i got enough informations about PF.

  9. Juan says:

    in Mexico there is a penalty if you are under 90% of power factor, but also there olso a bonus if you are above only for industrial loads, they use this 2 formulas: total_energy_bill_PF_carge_%= (3/5)*((90/PF)-1)*100, total_energy_bill_PF_bonous_%= (1/4)*(1-(90/PF))*100

  10. bvcshekar says:

    power factor improvement is done to reduce losses upstream. What if the compensating equipment consumes many times more energy than it saves upstream? Are there standards fixing the wattloss/kvar of compensating equipment?

  11. rockz04 says:

    in our country philippines, most of our power factors here is in 0.86 only..

  12. andre_cirilo1 says:

    Great information!

    I am Electrical Engineer and will inform soon as occurs in Brazil demand reactive

  13. Shafiq Ahmed says:

    this information is very informative for all electrical engineer and electric lover, thank you for sharing.


  14. Yasin says:

    in our country, the cos phi level is 0.98 so its almost impossible to compensation with only using 3-p capacitors, you should use also 1-p capacitors. as you may know, electric energy is getting expensive year an year and most of utulities are going to level up cos phi level their countries. so why? because reactive energy is waste as for us.
    also this information is very good, thanks a lot.

  15. liew_mic says:

    I am mic from singapore.

    our Power factor (cosQ) 0.85, if below than that, owner have to responsible for the electical bill.because our electrical from 22kv/6.6kv is purchase from company instead of government. in many matter to increase the power factor equal to 1.

  16. Rizwan says:

    Yasin said:

    by the way, my country is Turkey :)

    Now a days in India, in Mumbai distribution APFC's are used to maintain P.F , in RSS depending upon the requirement capacitor banks are installed to improve the pf at transmission level. But due to some industries the power factor reduces which increases line current and some drop in voltage, depending upon the requirement they are charged and discharged. HT consumer's are penalized for the p.f if it goes below 0.98 and a compensation is given if thy maintain p.f more than 0.99.


  17. sinnadurai sripadmanaban says:

    1)Should we disconnect capacitor bank when powered by a generator?.

    2)Can somebody give ratings of capacitors for starting(reducing starting current) induction motors for various sizes of motors(hp/rpm)?.

    3)Can somebody give ratings of capacitors for pfc of individual motors of different hp/rpm

    Thanks

  18. Juan Carlos says:

    By the rules in Brazil, users supplied at voltages greater that 2.3 kV (group A) must have their PF verified by the utility in a mandatory and permanent way (art. 34, reg. 456/00). Users supplied at voltage lower than 2,3 kV (group B) can measure their PF in a facultative way. If that PF is lower than 0.92 (inductive or capacitive), reactive energy consumption and demand are mesure and charges apply (Art. 49, reg. 456/00). Furthermore, according to art. 68, reg. 456, users from group B can be charged by their reactive energy and demand, if their PF is lower than 0,92 during a minimum period of 7 days. From my point of view, if utilities adopt electronic meters to also register the PF of residential users, there are no regulation that don’t allow them to charge us by the reactive energy. So, the end is near… Are you agree?

  19. Sylvester says:

    Can any one on the list inform me correct connection of Power factor capasitors to be installed after the Electricity meter or else on the bus bar.

     

    Sylvester.

  20. Sylvi says:

    In Srilanka no penaly or any surcharge for power Lag.

    Sylvester.

  21. Nice share…
    I just know that Power Factor Correction policy in some countries much higher than in Indonesia.
    Very good for optimization of generator utilization..

  22. I am from Romania. I am not aware of penalties applied at least to home consumers. I have no connections to industrial world, so i don’t know what’s up there.
    It would be usefull to know the source of this informations.

  23. Thanks for this information. We work with electric utilities, major corporations, government agencies, and equipment manufacturers around the world. PF correction is a topic of rising interest, so thanks for providing this helpful information

  24. ali says:

    can anybody please direct me to where i can get standard power factors of various equipment for a hospital? ( example motors,elevators,pumps,refrigirator,medical equipment,kitchen equipment,low current equipment…..

  25. horst.droege says:

    Hi,

    in Malaysia the utility company charges as well. Find details here:
    http://www.tnb.com.my/tnb/business/charges-and-penalties/power-factor-surcharge.html

  26. ouk chittra says:

    I'm Cambodian, I working in Electrical of Cambodia. It is very very important for me about information from neighboring country or worl wide, the formular (or policy) for penalty to the  costumers that utilize more reactive energy per month over admisible. Thank for your good ideal. Please sent to chittra.ouk@gmail.com

  27. waqar memon says:

    endar said:

    it is nice information about PF. thanks


    thank sir i get lot of information  about the P.F

  28. amit kulkarni says:

    ali said:

    can anybody please direct me to where i can get standard power factors of various equipment for a hospital? ( example motors,elevators,pumps,refrigirator,medical equipment,kitchen equipment,low current equipment…..


    Hi, this is amit kulkarni fm Ahmednagar,maharashtra india,

    i do energy audit in various sector such as foundries, cnc shops,machine shops,forging,colleges etc.

    power factor =Real power/active power.

    to calculate origional PF

    u require some data like

    1.consumption of instrument in kwh  (Ew)

    2.consumption of reactive energy in kvarh (Eb)

    3.working hrs.(t)

    also u must know hp of insrument,rpm,efficiency.

    Active energy power (P) = Ew/t.

    origional pf = 1/√(Eb/Ew)+1 .

    also u need any information @ power factor or energy saving pl mail me on powercop.auditors@gmail.com or powercop.general@gmail.com

  29. paukkyaing says:

    I am from Myanmar, one of  LDCs in the world. Although our country is over 50 times larger than singapore, our power consumption is only 1/10 times of Singapore. I mean Myanmar power system is not big. Our country has no penalty for power factor lagging. But now a day, we have  problems concerning with power factor improvement. And also have problems in voltage and frequency control. Many of substations in our country did not have capacitor banks or shunt reactor before 2009. I would like to know that is there any relation between PFC and voltage and frequency control? Please anybody answer.

  30. amit says:

    hi,

    1.u should disconnect capacitors b4 starting genset.
    capacitor acts as load on generator.

    2. there are various types of capacitors like MPP, Gas filled etc. depending on the working of motor one can suggest u the exact capacitors.

    if u need mail me on powercop.auditors@gmail.com

  31. Frank Doherty says:

    Good info, thanks for sharing.

    I understand that the requirement in Brazil is 0.92, but I do not have access the the penalty.

    Do you plan to occasionally update the spreadsheet?

    “Knowledge not shared is knowledge wsted.”

  32. pillay says:

    sinnadurai sripadmanaban said:

    1)Should we disconnect capacitor bank when powered by a generator?.

    2)Can somebody give ratings of capacitors for starting(reducing starting current) induction motors for various sizes of motors(hp/rpm)?.

    3)Can somebody give ratings of capacitors for pfc of individual motors of different hp/rpm

    Thanks


    sinnadurai sripadmanaban said:

    1)Should we disconnect capacitor bank when powered by a generator?.

    2)Can somebody give ratings of capacitors for starting(reducing starting current) induction motors for various sizes of motors(hp/rpm)?.

    3)Can somebody give ratings of capacitors for pfc of individual motors of different hp/rpm

    Thanks

    1) Capacitor banks are connected to correct the PF in the system,if the pf is low, than for the same load the ampere would be higher.If your load is always below fulload or tripping treshold than its ok you may disconnect  the pf bank.

    2) Caps are not used for reducing starting current.

    3) Ratings of capacitors for pf correction can only be determined by knowing your existing pf and to what pf you want to improve to.


    Juan Carlos said:

    By the rules in Brazil, users supplied at voltages greater that 2.3 kV (group A) must have their PF verified by the utility in a mandatory and permanent way (art. 34, reg. 456/00). Users supplied at voltage lower than 2,3 kV (group B) can measure their PF in a facultative way. If that PF is lower than 0.92 (inductive or capacitive), reactive energy consumption and demand are mesure and charges apply (Art. 49, reg. 456/00). Furthermore, according to art. 68, reg. 456, users from group B can be charged by their reactive energy and demand, if their PF is lower than 0,92 during a minimum period of 7 days. From my point of view, if utilities adopt electronic meters to also register the PF of residential users, there are no regulation that don't allow them to charge us by the reactive energy. So, the end is near… Are you agree?


  33. Arthur H. says:

    This is quite enlightening. I didn’t know that some countries impose a certain penalty when you consume too much energy.

  34. Senthil says:

    Hi,

    Are you working for or own the company called Sri Enterprises? If so, i would like clarify some details. Could you please provide your contact details?

  35. Geoffrey says:

    It’s a pity you don’t have a donate button! I’d definitely donate to this superb blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account.
    I look forward to new updates and will share this site with my Facebook group.
    Chat soon!

  36. PJ says:

    Hi, I was wondering where I could find the sources for the information in the spreadsheet for the current year, 2013? Thanks!

  37. Richard 39 says:

    Hi everyone!

     

    1. I would like to ask if which is better to install capacitor bank is it in the Main line or per motor/per distribution? What will be the benefits.

    2. If there is no application or rebates for correcting the power factor, is there any savings for correcting the KVAR in the motor. Can you please provide the formula if there’s any? 

    Thank you

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