Power Factor Correction Solution set to Save Businesses Millions in Electricity Bills
10 April 2021
Our energy management partner Alpha Power Solutions (APS) implemented a kVA reduction solution at a Vereeniging-based abattoir, resulting in electricity costs savings of R1.4-million annually. The project required the installation of our automatic power factor correction equipment.
Detailed online metering information provided by the abattoir allowed APS to determine that power factor correction equipment would substantially reduce electricity costs. However, the metering information incorporated details of two supply transformers and the load split across the transformers had to be determined. To obtain accurate results, data loggers were installed in the facility for one week to monitor power usage. Based on the load profiling results, APS was able to propose a turnkey solution that would drastically reduce electricity costs.
First contact with the abattoir was in May 2019, and once abattoir management realised the extent of potential savings from the load profiling results, the lead time for the proposed solution became critical. Project go-ahead was given in July of that year, with the expectation that the project would be complete prior to the abattoir’s next electrical billing cycle.
APS ordered one 675 kVAr and one 400 kVAr power factor correction system from us, which is comprised of Lovato Electric controllers and contactors, Electronicon capacitors, as well as 7% reactors fitted into each unit
Panels were constructed at our Johannesburg-based workshop, and incorporated all required componentry for a fully completed power factor solution. Following successful inhouse testing and commissioning, the completed panel-mounted systems were delivered to APS for installation and commissioning at the abattoir.
We worked closely with APS to ensure the deadline was met. Had it been missed by even one day, the abattoir would not have experienced the power and cost-savings over the next billing period. Onsite commissioning by APS was conducted in August 2019, within only one month of receiving project go-ahead.
Although our solution requires servicing only every six months, a post-installation service was conducted four weeks after implementation to certify that optimum ROI was being achieved. APS extended our standard 12-month warranty to 24-months as a value-added service. “We understand the products in the range and have the utmost confidence in the brands used and in EM’s capabilities,” explained APS Managing Director Eric Solot. “We were therefore prepared to absorb the risk of an extended warranty.”
Solot is of the opinion that all of South Africa’s industrial businesses can benefit from load reduction technology and save millions of Rands in the process. He says that often business owners are unaware of power saving technology and that increased charges (fines) by government for excessive electricity consumption are not always immediately obvious. “This leaves business owners oblivious to any electricity cost reduction opportunities,” he says.
South Africa’s national electricity provider’s tariff increase comes into effect in April 2021, followed by the municipalities’ tariff hike three months later. By including a power factor correction strategy in their business planning, businesses will, at the absolute minimum, offset the tariff increase.
With an investment of just over R500 000, the savings realised by the customer is R120 000 each month. This is a complete ROI in under five months.
Our energy management partner Alpha Power Solutions (APS) implemented a kVA reduction solution at a Vereeniging-based abattoir, resulting in electricity costs savings of R1.4-million annually. The project required the installation of our automatic power factor correction equipment.
Detailed online metering information provided by the abattoir allowed APS to determine that power factor correction equipment would substantially reduce electricity costs. However, the metering information incorporated details of two supply transformers and the load split across the transformers had to be determined. To obtain accurate results, data loggers were installed in the facility for one week to monitor power usage. Based on the load profiling results, APS was able to propose a turnkey solution that would drastically reduce electricity costs.
First contact with the abattoir was in May 2019, and once abattoir management realised the extent of potential savings from the load profiling results, the lead time for the proposed solution became critical. Project go-ahead was given in July of that year, with the expectation that the project would be complete prior to the abattoir’s next electrical billing cycle.
APS ordered one 675 kVAr and one 400 kVAr power factor correction system from us, which is comprised of Lovato Electric controllers and contactors, Electronicon capacitors, as well as 7% reactors fitted into each unit
Panels were constructed at our Johannesburg-based workshop, and incorporated all required componentry for a fully completed power factor solution. Following successful inhouse testing and commissioning, the completed panel-mounted systems were delivered to APS for installation and commissioning at the abattoir.
We worked closely with APS to ensure the deadline was met. Had it been missed by even one day, the abattoir would not have experienced the power and cost-savings over the next billing period. Onsite commissioning by APS was conducted in August 2019, within only one month of receiving project go-ahead.
Although our solution requires servicing only every six months, a post-installation service was conducted four weeks after implementation to certify that optimum ROI was being achieved. APS extended our standard 12-month warranty to 24-months as a value-added service. “We understand the products in the range and have the utmost confidence in the brands used and in EM’s capabilities,” explained APS Managing Director Eric Solot. “We were therefore prepared to absorb the risk of an extended warranty.”
Solot is of the opinion that all of South Africa’s industrial businesses can benefit from load reduction technology and save millions of Rands in the process. He says that often business owners are unaware of power saving technology and that increased charges (fines) by government for excessive electricity consumption are not always immediately obvious. “This leaves business owners oblivious to any electricity cost reduction opportunities,” he says.
South Africa’s national electricity provider’s tariff increase comes into effect in April 2021, followed by the municipalities’ tariff hike three months later. By including a power factor correction strategy in their business planning, businesses will, at the absolute minimum, offset the tariff increase.
With an investment of just over R500 000, the savings realised by the customer is R120 000 each month. This is a complete ROI in under five months.
Before installation of Power Factor Correction System
