OUTCOME 2

Discuss electricity billing, load

management, maximum demand control,
Power factor improvement and benefits.
 Industrial End User
• At the industrial end user premises, the plant network elements like
transformers at receiving sub-station, switchgear, lines and cables,
load-break switches, capacitors cause losses which affect the input-
received energy. However, the losses in such systems are meager and
unavoidable.
• When the power reaches the industry, it meets the transformer. The
energy efficiency of the transformer is generally very high. Next, it
goes to the motor through internal plant distribution network.

• A typical distribution network efficiency including transformer is 95%

and motor efficiency is about 90%.

• Another 30 % is lost in the mechanical system which includes

coupling/ drive train, a driven equipment such as pump and flow
control valves/throttling etc.

• Hence one unit saved in the end user is equivalent to two units
generated in the power plant. (1Unit / 0.5Eff = 2 Units)
 Electricity Billing
• The electricity billing by utilities for medium & large enterprises, in
High Tension (HT) category is often done on two-part tariff structure,
one part for capacity (or demand) drawn and the second part for
actual energy drawn during the billing cycle.

• Capacity or demand is in kVA or kW terms. The reactive energy kVArh

drawn by the service is also recorded and billed for in some utilities,
because this would affect the load on the utility.

• Accordingly, utility charges for maximum demand, active energy and

reactive power drawn in its billing structure.

• In addition, other fixed and variable expenses are also levied.

• The demand varies from time to time. The demand is measured over
predetermined time interval and averaged out for that interval as
shown by the horizontal dotted line.
• Electricity boards have changed over from conventional
electromechanical trivector meters to electronic meters, which have
some excellent provisions that can help the utility as well as the
industry. These provisions include:
Substantial memory for logging and recording all relevant events
High accuracy up to 0.2 class
Amenability to time-of-day tariffs
Tamper detection /recording
Measurement of harmonics and Total Harmonic Distortion (THD)
Long service life due to absence of moving parts
Amenability for remote data access/downloads
 Electrical Load Management and Maximum
Demand Control
Need for Electrical Load Management :

• the growth in the electricity use and

• diversity of end use segments in time of use
has led to shortfalls in capacity to meet demand.

As capacity addition is costly and only a long-time prospect.

• load management at user end helps to minimize peak demands on the
utility infrastructure and
• utilization of power plant capacities.
• The utilities use power tariff structure to influence end user in better
load management through measures like

time of use tariffs,

penalties on exceeding allowed maximum demand,

night tariff concessions etc.

• Users need integrated load management to effectively control the

maximum demand.
 Step By Step Approach for Maximum Demand
Control
• Load Curve Generation:
• Presenting the load demand of a consumer against time of the day is
known as a load curve.

• If it is plotted for the 24 hours of a single day, it is known as an hourly

load curve and if daily demands plotted over a month, it is called daily
load curves.

• A typical hourly load curve for an engineering industry is shown in

Figure
• These types of curves are useful in
predicting patterns of
• drawl,
• peaks and
• valleys and
• energy use trend in an industry or
in a distribution network
 Storage of Products/process utilities like
refrigeration
• It is possible to reduce the maximum demand by
• building up storage capacity of products, water, chilled water / hot
water, using electricity during off peak periods.

• Off peak hour operations also help to save energy due to favourable
conditions such as lower ambient temperature etc.

Example: Ice bank system is used in milk & dairy industry.

• Ice is made in lean period and used in peak load period and thus
maximum demand is reduced.
 Shedding of Non-Essential Loads:

• When the maximum demand tends to reach pre-set limit, shedding

some of non-essential loads temporarily.

• It is possible to install direct demand monitoring systems, which will

switch off non-essential loads when a pre-set demand is reached.

• Simple systems give an alarm, and the loads are shed manually.

• Microprocessor controlled systems are also available, which provide a

wide variety of control options.
Accurate prediction of demand
Graphical display of present load, available load, demand limit
Visual and audible alarm
Automatic load shedding in a predetermined sequence
Automatic restoration of load
Recording and metering

Operation of Captive Generation and Diesel Generation Sets:

• When diesel generation sets are used to supplement the power supplied by
the electric utilities, it is advisable to connect the D.G. sets for durations
when demand reaches the peak value.

• This would reduce the load demand to a considerable extent and minimize
the demand charges.
 Reactive Power Compensation:

• The maximum demand can also be reduced at the plant level by using
capacitor banks and maintaining the optimum power factor.

• Capacitor banks are available with microprocessor-based control

systems.

• These systems switch on and off the capacitor banks to maintain the
desired Power factor of system and optimize maximum demand.
Power Factor Improvement and Benefits

Power factor Basics:

• In all industrial electrical distribution systems, the major loads are
resistive and inductive.

• Resistive loads are incandescent lighting and resistance heating. In

case of pure resistive loads, the voltage (V), current (I), resistance (R)
relations are linearly related
V = I x R and Power (kW) = V x I
Typical inductive loads are
• A.C. Motors,
• Induction furnaces,
• Transformers.

• Inductive loads require two kinds of power:

a) active (or working) power to perform the work and

b) reactive power to create and maintain electro-magnetic fields.

• The vector sum of the active power and reactive power make up the
total (or apparent) power used.

• This is the power generated by the utility for the user to perform a
given amount of work.

• Total Power is measured in kVA (Kilo Volts-Amperes).

• When electric utilities supply power, if all loads have unity power
factor

• maximum power can be transferred for the same distribution system

capacity.

• However, as the loads are inductive in nature, with the power factor
ranging from 0.2 to 0.9,

• the electrical distribution network is stressed for capacity at low

power factors.
 The advantages of PF improvement by
capacitor addition
Reactive component of the network is reduced and so also the total
current in the system from the source end.
I2R power losses are reduced in the system because of reduction in
current.
Voltage level at the load end is increased.
kVA loading on the source generators as also on the transformers and
lines up to the capacitors reduces giving capacity relief.
A high powerfactor can help in utilising the full capacity of your
electrical system.
 Cost benefits of PF improvement
While costs of PF improvement are in terms of investment needs for
capacitor addition the benefits to be quantified for feasibility analysis
are:
Reduced kVA (Maximum demand) charges in utility bill
Reduced distribution losses (KWH) within the plant network
Better voltage at motor terminals and improved performance of
motors
A high powerfactor eliminates penalty charges imposed when
operating with a low power factor
Investment on system facilities such as transformers, cables,
switchgears etc for delivering load is reduced.
 Selection and location of capacitors
Direct relation for capacitor sizing
kVAr Rating = kW [tan φ1 – tan φ2]

where kVAr rating is the size of the capacitor needed, kW is the average
power drawn, tan φ1 is the trigonometric ratio for the present power
factor, and tan φ2 is the trigonometric ratio for the desired PF.

φ1 = Existing (Cos-1 PF1) and

φ2 = Improved (Cos-1 PF2)
Alternatively the Table can be used for capacitor sizing:

The figures given in table are the multiplication factors which are to be
multiplied with the input power (kW) to give the kVAr of capacitance
required to improve present power factor to a new desired power
factor

Table is given last slide

• From energy efficiency point of view, capacitor location at receiving
substation only helps the utility in loss reduction.

• Locating capacitors at tail end will help to reduce loss reduction

within the plant's distribution network as well and directly benefit the
user by reduced consumption.

• Reduction in the distribution loss % in kWh when tail end power

factor is raised from PF1 to a new power factor PF2, will be
proportional to
 Material of capacitors:
• Power factor capacitors are available in various types by dielectric
material used as paper.

• The watt loss per kVAr as well as life vary with respect to the choice of
the dielectric material and hence is a factor to be considered while
selection.

Connections:
• Shunt capacitor connections are adopted for almost all industry or
end user applications.

• Series capacitors are adopted for voltage boosting in distribution

networks.
 Some checks that need to be adopted in use of capacitors are :

Nameplates can be misleading with respect to ratings. It is good to

check by charging currents.

Capacitor boxes may contain only insulated compound and insulated

terminals with no capacitor elements inside.

Capacitors for single phase motor starting and those used for lighting
circuits for voltage boost, are not power factor capacitor units and
these cannot withstand power system conditions.