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Reactive Power Compensation - a solution to reduce electricity costs

July 19, 2024
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Reactive Power Compensation - a solution to reduce electricity costs-0

Did you know that reactive power consumption can significantly increase your electricity bills? In this article, we will explain how reactive power compensation equipment can help reduce electricity costs, improve grid quality and extend the lifetime of generation equipment. Find out how these devices can provide immediate economic benefits and solve a number of problems related to reactive power.

Table of contents


What is reactive power compensation equipment?

Reactive power compensation devices are technologies that help reduce electricity consumption and improve the efficiency of the electricity grid. These devices compensate for the reactive power generated by electric motors, daylight lamps and other inductive consumers, thereby reducing electricity bills and system load.

The main benefits of reactive power compensation equipment

  • Cost reduction: the amount to be paid on the electricity bill is reduced, as the charge for reactive power is a significant part of the total electricity bill.
  • Improving the quality of the grid: The stability and efficiency of the grid is increased, which extends the lifetime of generating equipment.
  • Reducing system load: Reduces the load on cables and transmission lines, reducing voltage drops and transformer overloading.

Impact of reactive power on the business

Reactive power consumption increases electricity costs and causes a number of technical problems, such as cable heating, increased voltage drops and the need to install increased protection devices. By installing reactive power compensation equipment, these problems are solved, improving the overall system performance.

Economic benefit and ROI

By installing reactive power compensation equipment, companies can gain immediate economic benefits. In this section, we will look at an example that shows how a company can recoup its investment in the short term and how this affects the overall cost in the long term.

Example from a manufacturing company

The manufacturing company using the electric motors consumes about 155 000 kVArh of reactive power per month, for which the monthly payment is about € 585.00. The company pays about 7020,00 € per year for this item, and over a period of five years this cost amounts to 35100,00 €.

After analysis, it was found that a 600 kVAr compensation plant is needed, for an investment of approximately EUR 8500,00. This investment pays for itself in 14,53 months. Over a period of five years, the company makes a profit of EUR 26600,00.

  Without compensation With a compensation device
Monthly costs 585,00 € 0,00 €
Annual costs 7020,00 € 8500,00 € (one time)
5-year costs 35100,00 € 8500,00 €
ROI period N/A 14,53 month
Profit after 5 years N/A 26600,00 €

 aprekins

Reactive Power Compensation equipment is an excellent solution for companies looking to reduce electricity costs and improve system efficiency. By installing such equipment, companies not only save money, but also contribute to grid stability and longer operation of generating equipment.

If you want to find out more and start saving, contact us and use your energy more efficiently!

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Contact the manager
Mārtiņš Kāns
Mārtiņš Kāns
Project Division Manager
+371 2910 0172
martins@lasma.eu
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