How to Save Money When Buying Power Quality Projects

Are you feeling overwhelmed by high energy bills? Power monitoring systems offer a solution. They give details on how and where you use electricity, helping you save money. This article explores how these systems can help manage and reduce your energy consumption effectively.

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The Benefits of Power Monitoring Systems

Power monitoring systems provide real-time data on energy usage, identify inefficiencies, and ultimately lead to cost savings. Improved equipment maintenance is another benefit derived from using power monitoring systems.

Real-time monitoring of energy usage

Real-time monitoring of energy usage allows managers to observe power consumption as it happens. This capability is vital in detecting patterns, peak usage times, and areas where energy conservation measures can markedly improve efficiency.

By collecting real-time data, these systems enable swift action to adjust settings or shut down equipment not in use, preventing waste and optimizing program efficiency.

The ultimate purpose of power monitoring is to collect real-time data on power usage.

Insights gained from energy monitoring highlight opportunities for reducing electricity usage without cutting back on operational requirements. This process leads directly to cost savings by avoiding unnecessary energy expenditure and laying the groundwork for a more sustainable approach to managing commercial properties effectively.

Identifying and addressing inefficiencies

Transitioning from monitoring to action, power monitoring systems play a crucial role in identifying and addressing inefficiencies within a commercial facility. These systems pinpoint areas of excessive energy use and reveal underlying issues that may contribute to higher operational costs.

By analyzing data collected in real-time, managers can quickly detect anomalies in power consumption patterns. This enables them to take immediate corrective actions, ensuring resources are used optimally.

Implementing proactive measures based on this analysis significantly improves energy management strategies. Managers gain insights into which systems or processes are not performing efficiently and can then focus on rectifying these areas.

Whether it's outdated equipment draining more power than necessary or an HVAC system working overtime due to poor insulation, identifying these inefficiencies is the first step towards achieving substantial energy savings and enhancing sustainability efforts within the property.

Cost savings

Power monitoring systems play a crucial role in slashing energy consumption and reducing utility bills for commercial properties. By providing real-time data on electricity usage, these systems enable property managers to identify areas where energy is wasted and implement cost-effective solutions.

This targeted approach can lead to substantial cost savings, with some buildings seeing up to 20% reduction in site energy costs.

Moreover, accurate monitoring ensures that electrical bills reflect actual usage, helping to prevent overcharges and improve the accuracy of financial forecasting. For data centers, proactive power management can significantly lower total ownership costs by optimizing energy efficiency and minimizing unnecessary spending on power.

Through careful monitoring and management of energy use, commercial properties can achieve significant financial benefits while contributing to environmental sustainability.

Improved equipment maintenance

Improved equipment maintenance is essential for commercial property managers. Power monitoring systems provide the capability for predictive maintenance, giving insight into the health and stability of an electrical network.

These systems measure energy usage, offering information to help operators proactively maintain data center power, increase equipment lifespan and decrease maintenance costs. For commercial property managers seeking enhanced equipment maintenance and reliability monitoring, power monitoring systems are invaluable tools.

With power monitoring systems in place, we can ensure proactive and predictive maintenance measures that contribute to increased equipment longevity and reduced maintenance costs.

Different Types of Power Monitoring Systems

Single-phase, split-phase, and three-phase systems offer a range of options suited to different energy monitoring needs. Read on to explore more about power monitoring systems.

Single-phase systems

Single-phase systems play a crucial role in power monitoring and energy management. Power monitoring devices, sensors, and meters are specifically designed for single-phase power measurement.

These systems are essential for measuring power consumption, enabling commercial property managers to track electricity usage effectively. By utilizing single-phase power monitoring systems, property managers can support energy-saving initiatives and make informed decisions to improve energy efficiency within their facilities.

Furthermore, single-phase power is integral to the functionality of energy monitoring systems. It enables accurate tracking of electricity consumption, aligning with the goal of reducing overall energy costs while enhancing sustainability efforts.

Split-phase systems

Transitioning from single-phase systems to split-phase systems, it is important to understand the role of split-phase power in electric power distribution. Split-phase power divides a single-phase into two separate phases and plays a crucial part in managing energy usage and monitoring electrical systems.

This type of system ensures efficient voltage monitoring and current measurement for effective power analysis, contributing to improved power management practices within commercial properties.

Split-phase systems enable property managers to gain insights into high-usage areas, diagnose power quality issues, and monitor renewable energy production, supporting better decision-making for cost-effective energy management strategies.

Three-phase systems

Three-phase systems deliver three separate currents through the same circuit, each uniformly separated in phase angle. This method of power generation, transmission, and distribution is the common practice for alternating current.

A three-phase voltage source connects to a three-phase load via transformers and transmission lines. Threephase systems are essential for powering commercial properties efficiently and reliably.

The Role of Power Monitoring Systems in Energy Management

Power monitoring systems play a crucial role in energy management, identifying high usage areas and diagnosing power quality issues. They also monitor renewable energy production, thereby supporting commercial property managers in optimizing their electrical network efficiency.

Identifying high usage areas

Power monitoring systems play a crucial role in identifying high usage areas within commercial properties. By providing insights into energy consumption patterns and peak usage times, these systems allow facility managers to pinpoint areas where energy is being used at its highest levels.

Current sensors are key components of power monitoring systems, enabling detailed monitoring and control of power, current, and energy systems. This efficiency ultimately helps to uncover high usage areas and inform strategies for efficient power management.

Diagnosing power quality issues

Power quality monitoring involves gathering and analyzing measurement data to provide useful business insights. This informs diagnostic electrical testing on machines to identify power issues such as dips, swells, transients, interruptions, and unbalance.

By monitoring power quality, commercial property managers can prevent costly outages and manage equipment maintenance effectively. The aim is to rectify power-related issues that could potentially cause equipment failure and downtime.

Power quality issues include voltage sag and surges, which can be monitored, analyzed, and compared to identify potential problems in the system.

Monitoring renewable energy production

Monitoring renewable energy production is a crucial aspect of managing energy consumption and optimizing production in commercial properties. Power monitoring systems play a pivotal role in this process by providing real-time data on the performance of renewable energy sources.

This enables property managers to make informed decisions that lead to more efficient use of renewable energy, ultimately contributing to cost savings and environmental sustainability.

Commercial property managers can leverage power monitoring systems to gain insights into the amount of energy being produced by renewable sources such as solar panels or wind turbines.

How Power Monitoring Systems Can Benefit Commercial Properties

Power monitoring systems can benefit property managers by reducing electricity bills and helping to lower their carbon footprint. They also gain the advantage of avoiding disasters through real-time monitoring of energy usage, which empowers them to take proactive measures in managing their energy consumption.

Lower electricity bills

Power monitoring systems deliver a valuable tool to lower electricity bills. These systems provide granular energy intelligence, pinpointing the appliances and devices that consume the most energy.

With this insight, people can seize opportunities to save money and manage energy costs more effectively. According to important facts associated with these monitoring systems, their implementation can help achieve a 30% to 40% decrease in electricity consumption.

Reduced carbon footprint

Power monitoring systems play a crucial role in helping reduce carbon footprint. By promoting energy-efficient practices and providing real-time data on energy usage, these systems enable individuals to make informed decisions that contribute to sustainable living.

Not only does this aid in lowering electricity bills, but it also aligns with ecofriendly practices and supports renewable energy sources. Through the implementation of green technology and energy efficiency measures, power monitoring systems assist in minimizing carbon emissions, thereby making a significant impact on the environmental realm.

Implementing power monitoring systems not only aids in reducing energy costs but also plays an essential part in promoting sustainable development and decreasing the overall carbon footprint of residential properties.

Avoiding disasters

Power monitoring systems play a crucial role in avoiding disasters by ensuring uninterrupted power supply, reducing outages, and enhancing grid resilience. These systems provide smart power and temperature monitoring to prevent potential disasters before they occur, enabling commercial property managers to maintain business continuity even during unforeseen events.

With the ability to detect power quality issues and monitor energy usage in real-time, these resilient power systems help mitigate the impact of natural disasters and blackouts, contributing to a more reliable and sustainable energy management strategy.

Healthcare facilities benefit significantly from energy-efficient power monitoring systems as they enhance resilience, providing continuous operations during emergencies or natural disasters.

Contact Lightility

Power monitoring systems play a crucial role in managing energy consumption and promoting efficiency. By providing real-time data and identifying inefficiencies, these systems empower property managers to make informed decisions that lead to cost savings and improved equipment maintenance.

The practicality of these strategies ensures easy implementation and significant impact, leading to lower electricity bills, reduced carbon footprint, and disaster prevention. For further guidance, consider exploring additional energy management resources for continued improvement.

Harnessing the power of monitoring systems is key for successful energy management in commercial properties. Contact Lightility to learn how we can help!

FAQs

1. What is the role of a power monitoring system in energy management?

A power monitoring system helps track and analyze energy usage to identify areas for improvement and optimize energy efficiency.

2. How does a power monitoring system help reduce energy costs?

By providing real-time data on energy consumption, a power monitoring system enables businesses to make informed decisions that lead to reduced energy waste and lower utility bills.

3. Can a power monitoring system help in identifying equipment issues?

Yes, a power monitoring system can detect abnormal patterns or fluctuations in energy usage, indicating potential equipment malfunctions or inefficiencies.

4. Is it complicated to install a power monitoring system?

No, modern power monitoring systems are designed for easy installation and integration with existing electrical infrastructure.

5. What types of facilities can benefit from using a power monitoring system?

Various facilities such as manufacturing plants, commercial buildings, data centers, hospitals, and educational institutions can benefit from implementing a power monitoring system to enhance their energy management practices.

Published by Electrotek Concepts, Inc., PQSoft Case Study: Power Factor Correction ' Estimating Financial Savings, Document ID: PQS, Date: January 1, .

Abstract: Low power factor means that you are using a facility's electrical system inefficiently. It can also cause equipment overloads, low voltage conditions, and greater line losses. Most importantly, low power factor can increase total demand charges and cost per kWh, resulting in higher monthly electric bills. This case study provides a summary of interrupting electric utility rates and billing, and estimating financial savings when applying low voltage power factor correction capacitors.

REVIEW OF UTILITY RATES AND PENALTIES

Each electric utility has their own unique method and related rates for determining power factor penalties (if they have a penalty), and it is not within the scope of this case study to summarize all of the possible rates and penalties. In addition, there is no one single industry standard that provides a summary of this information.

Therefore, this case provides some general background information and examples for related power factor penalties and economic evaluations for determining the financial benefits when applying power factor correction capacitors.
There are a number of methods for charging for poor power factor:

• Charges for kVArh
• Charges for kVAr demand
• Charges for kVA demand
• Charges for adjusted kW demand
• Charges based on a percentage of the demand or base charge

Utilities charge for energy and demand. Energy is produced by burning fuel to drive turbines to produce electricity. The energy charges are in cents/kWh and are used to pay for energy production (e.g., fuel). The demand charges are a charge for the rate at which you demand the energy (also known as a demand penalty). The demand charges are in $/kW and are used to pay for energy transmission (e.g., transmission lines).

Interpreting Utility Bills

Utility monthly billing must be analyzed before it can be determined if capacitors are economically justified. Preferably, all bills for the previous year should be collected in order to establish seasonal variations and long term trends in electric consumption. If these are not available, the key data to request from the utility are maximum demand, power factor, typical energy usage, and power factor penalty or demand charge. Industrial consumer bills generally have two main parts, including the energy charges and the demand charges. There are also taxes and other miscellaneous charges, but these typically do not have a significant impact on the economic justification for power factor correction capacitors.

The energy charge is determined by multiplying the number of kWh of energy consumed in the month times the energy rate ($/kWh). The demand charge is more complicated. It is typically based on the peak kW demand over a given 15-, 30-, or 60-minute interval during the month. This is nominally multiplied by the demand charge rate ($/kW). However, many utilities assess a penalty to the demand if the power factor is lower than a predetermined value. There are two common formulae in use for determining the billed demand when the actual power factor is lower than power factor penalty value (lagging):

Both of these are applied only when the actual power factor is less than power factor penalty value (lagging). Otherwise, the billed demand is the same as the actual demand.

The difference between the amount paid for the billed demand and the amount for the actual demand is often termed the power factor penalty. This quantity is generally responsible for the bulk of the justification for capacitors:

The power factor (PF) used in billing is generally an average power factor determined over the entire month, although a few utilities may bill interval-by-interval. The usual procedure for determining the power factor is to meter the kVArh as well as the kWh. This may be done by two separate meters or may be contained within one electronic meter. The kVArh are then combined with the kWh to obtain an equivalent kVAh:

The average power factor is then:

The kVArh meter is usually 'detented' so that it only records lagging VArs; that is, the VArs drawn by motors. No credit is given for leading VArs (a meter which is detented will record power flow in only one direction).

It should be noted that some utilities have considered billing for kVArh similarly to kWh. Existing meter technology can separately track leading and lagging kVArh. This provides the opportunity to have flexible rate structures to create incentives for customers to control var consumption and production.

Determining Financial Savings when Applying Power Factor Capacitors

This section provides several examples illustrating power factor penalties and economic evaluations for determining the financial benefits when applying power factor correction capacitors. It should be noted that the examples are only intended for general illustration purposes and in no way imply that the quoted rate structures and tariffs are indicative of the actual rate design methodologies and typical rates used by utilities.

Three-Phase Induction Motor Example

A small machine tool plant has an induction motor load that uses an average of 100 kW with an existing power factor of 80%. The desired power factor is 95%. Existing power factor, desired power factor, and kW are the three quantities that are required to properly select the amount of kVAr required to correct the lagging power factor of a three-phase induction motor. The required kVAr may be determined by either using the data provided in Table 1 (kVAr = kW * multiplier) or the following expression:

where:
kVAr = required compensation in kVAr
kW = real power in kW
tanφoriginal = original power factor phase angle
tanφdesired = desired power factor phase angle

Link to SINAVA

Additional reading:
Unlocking Efficiency with Active Harmonic Filters Explained

kVAr = kW * (tanφoriginal ' tanφdesired)

= 100 kW * (tan(cos-1 0.80) ' tan(cos-1 0.95)) = 42.2kVAr

kVAr Demand Charge Example

A facility with a demand of kVA, kW, and kVAr has a contract for power factor that includes an energy charge for kWh, a demand charge based on kW, and other demand charge based on kVAr. The kVAr charge is $1.50 per month for each kVAr of demand in excess of 1/3 of the kW demand.

The first step is to determine the kVAr demand in excess of 1/3 of the kW demand

kVAr ' ( kW/3) = 750 kVAr

The second step is to estimate the annual savings if the 750 kVAr demand charge is eliminated by the addition of 750 kVAr of power factor correction capacitors.

$1.50 demand charge * 750 kVAr * 12 months = $13,500

The third step is to determine the cost to purchase and install 750 kVAr of capacitors. It is assumed that on a 480 volt system, the installed capacitor cost is $30/kVAr.

750 kVAr * $30/kVAr = $22,500

The final step is to determine the payback period for the capacitor installation.

$22,500/$13,500 = 1.67 years (20 months)

Therefore the low voltage capacitor installation will pay for itself in about 20 months.

kW Demand Charge Example

A facility with a demand of 1,000 kW has a power factor of 80%. The utility has a demand charge of $9.00/kW for customers with power factors below 85%.

The first step is to determine the monthly kW billing.

kW * (0.85 target power factor / 0.80 existing power factor) = kW
kW * $9.00 = $9,567

The second step is to determine the amount of power factor correction capacitors that are required to improve the power factor to 85%.

kVAr = kW * (tanφoriginal ' tanφdesired)

= kW * (tan(cos-1 0.80) ' tan(cos-1 0.85)) = 130 kVAr

The third step is to determine the cost to purchase and install 130 kVAr of capacitors. It is assumed that on a 480 volt system, the installed capacitor cost is $45/kVAr.

130 kVAr * $45/kVAr = $5,580

The fourth step is to determine the monthly kW billing with the new power factor.

kW * (0.85 target power factor / 0.85 existing power factor) = kW
kW * $9.00 = $9,000

The final step is to compare both monthly billing values and determine the payback period for the capacitor installation.

$5,580/$567 = 10.32

Therefore the low voltage capacitor installation will pay for itself in approximately 10½ months.

kVA Demand Charge Example

A facility with a 400 kW load has a demand of 520 kVA. The utility has a demand charge of $3.00/kVA for customers with power factors below 95%.

The first step is to determine the present power factor.

power factor = kW/kVA = 400kW/520kVA = 0.769 or 77%

The second step is to determine the amount of power factor correction capacitors that are required to improve the power factor to 95%.

kVAr = kW * (tanφoriginal ' tanφdesired)

= 400 kW * (tan(cos-1 0.77) ' tan(cos-1 0.95)) = 200 kVAr

The third step is to determine the new kVA demand after the capacitors have been installed.

kVA = kW/ power factor = 400/0.95 = 421 kVA

The fourth step is to determine the cost to purchase and install 200 kVAr of capacitors. It is assumed that on a 480 volt system, the installed capacitor cost is $35/kVAr.

200 kVAr * $35/kVAr = $7,000

The final step is to compare both monthly billing values and determine the payback period for the capacitor installation.

(520 kVA ' 421 kVA) * $3.00/kVA = $297/month
$7,000/$297 = 23.57

Therefore the low voltage capacitor installation will pay for itself in approximately 2 years.

Increase in System Capacity Example

A facility with a demand of 400 kW and 520 kVA has a power factor of 77%. The facility manager would like to add power factor correction capacitors to increase the facility's capacity by 20%.

The first step is to determine the power factor required to release the desired amount of system kVA:

where:
PFnew = corrected power factor
PFold = existing power factor
kVArelease = amount of kVA to be released (in per-unit of existing kVA)

PFnew ' PFold / 1 ' kVArelease = 0.77 / 1 ' 0.20 = 0. = 96%

The second step is to determine the amount of power factor correction capacitors that are required to improve the power factor to 96%.

kVAr = kW * (tanφoriginal ' tanφdesired)

= 400 kW * (tan(cos-1 0.77) ' tan(cos-1 0.96)) = 215 kVAr

The third step is to determine the cost to purchase and install 215 kVAr of capacitors. It is assumed that on a 480 volt system, the installed capacitor cost is $45/kVAr.

215 kVAr * $45/kVAr = $9,675

Therefore the facility manager will be able to increate the plant's capacity by 20% by spending $9,675 to add 215 kVAr of power factor correction capacitors. The additional capacitor will be available for new motor and lighting loads without having to add new transformers or other distribution equipment.

Power Factor Penalty Example

A facility has the following electrical usage data:

163 kW load, 480 volt, three-phase service
730 hours per month operation
65% power factor
Power Factor Penalty ' $0. per kVArh (below unity)

The first step is to determine the facility kVA and kVAr.

kVA = kW/ power factor = 163/0.65 = 251 kVA

kVAr = '(kVA2 ' kW2) = '( ' ) ' 190 kVAr

Adding 190 kVAr of power factor correction will correct the power factor to unity (100%) and eliminate the power factor penalty.

The second step is to determine the monthly power factor penalty.

190 kVAr * $0./kVArh * 730 hrs = $208.05

The third step is to determine the cost of 190 kVAr of compensation. It is assumed that on a 480 volt system, the installed capacitor cost is $30/kVAr.

190 kVAr * $30/kVAr = $5,700

The final step is to determine the payback period for the capacitor installation.

$5,700/$208.05 = 27.397

Therefore, the low voltage capacitor installation will pay for itself in approximately 27 months.

SUMMARY

Power factor is a measurement of how efficiently a facility uses electrical energy. A high power factor means that electrical power is being utilized effectively, while a low power factor indicates poor utilization of electric power. Low power factor can cause equipment overloads, low voltage conditions, and greater line losses. Most importantly, low power factor can increase total demand charges and cost per kWh, resulting in higher monthly electric bills. Low power factor is generally solved by adding power factor correction capacitors to a facility's electrical distribution system. Power factor correction capacitors supply the necessary reactive portion of power (kVAr) for inductive devices. The principle benefit is lower monthly electric bills.

REFERENCES

IEEE Recommended Practice for Electric Power Distribution for Industrial Plants (IEEE Red Book, Std 141-), October , IEEE, ISBN:

IEEE Recommended Practice for Industrial and Commercial Power Systems Analysis (IEEE Brown Book, Std 399-), December , IEEE, ISBN:

IEEE Recommended Practice for Protection and Coordination of Industrial and Commercial Power Systems, March , IEEE, ISBN:

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