Introduction
Are you one of the many businesses facing penalties on their energy bills? These penalties often result from a need for more knowledge about critical parameters like power factors and excess demand. In this step-by-step guide, we will explore the different types of penalties imposed by companies and how to prevent them. We will also compare automatic power factor control (APFC) panels.
But don’t worry—we have put together this handy guide to explain the ins and outs of energy penalties so you can get on with your business.
Types of penalties are levied on the businesses by power companies:
1. Power factor penalty:
• A Power factor indicates the efficiency of electrical energy in a system.
• Low power factor measures how much energy is being used inefficiently. It is usually due to inductive loads like motors, transformers & fluorescent lights.
• Businesses with low power factors are penalized by power companies to encourage them to increase their energy efficiency.
• The acceptable amount is usually linked to the degree to which your power factor is below the optimal level of 1. Companies with deficient power factors can be subject to higher fines.
• Different power companies & different regulatory jurisdictions may impose various types of penalties. Some utilities may provide incentives or discounts for businesses with high power factors.
2. Excess demand penalty:
• An excess demand penalty is imposed on a business for exceeding its agreed-upon maximum demand.
• Power companies set maximum demand limits based on a company’s energy consumption habits and the available capacity of the power infrastructure that serves it.
• The maximum demand is the highest power consumption level in a given time frame, typically expressed in kW.
• Businesses that exceed this limit will be subject to additional charges, usually higher than standard electricity rates.
• A power company limits the amount of power a business can use at any given time to protect the stability of the power grid and avoid overloading the infrastructure.
Solutions to solve penalty:
1. Load Management:
➢ Good load management methods can help businesses avoid excess demand penalties.
➢ By tracking & improving energy-intensive operations, we can ensure you’re meeting your maximum demand limits.
➢ Investing in real-time energy management systems with monitoring and control features can facilitate load management efforts.
2. Employee training & awareness:
➢ Train staff on energy conservation & promote energy-efficient behaviour in the workplace.
➢ Adopt energy-efficient policies, such as turning off lights and appliances when not in use. Encourage employees to participate in energy-saving programs through incentive schemes.
➢ Installing energy monitoring system allows businesses to monitor energy usage trends in real-time, spot inefficient use, and make smart energy management decisions.
➢ Energy management software offers powerful analytics and reporting features that enable businesses to visualize energy data, set targets, and monitor progress toward energy efficiency objectives.
3. Collaborate with power companies:
➢ Work with utilities to carry out energy audits & find ways to save energy, improve your power factor & manage your demand.
➢ Utilize incentives from power companies to install energy-saving technologies Such as LED lighting.
➢ By leveraging the knowledge and experience of power company agents and auditors, companies can implement cost-efficient solutions that deliver significant benefits and savings over time.
Types of APFC Panels :
1. APFC panels with fixed capacitors:
➢ APFC panels with fixed capacitors are designed for electrical systems with stable load profiles and constant reactive power demand.
➢ Since these panels do not require complex control systems, they provide an economical way to increase power factor in consistent operating conditions.
➢ The principle behind fixed capacitors in APFC panels is quite simple: the capacitors are connected to the electrical system to counterbalance the reactive power of inductive loads.
2.Hybrid APFC panel :
➢ These panels are a combination of fixed capacitors & APFCs that are switched to a constant power factor for electrical systems with a varying load profile.
➢ These panels use fixed capacitors for basic reactive power compensation, with APFC functionality to dynamically adjust capacitance based on actual time load conditions.
➢ Hybrid ACFC panels are more flexible than fixed capacitor panels, as they can adjust to varying load conditions without requiring manual adjustment.
3. Automatic APFC panels :
➢ These automatic APFC panels have control algorithms that continually monitor and change the power factor.
➢ These panels provide power factor correction, reacting quickly to changes in load conditions to optimize energy efficiency & meet utility standards.
➢ With automatic APFC panels, there is no need for manual control as the panels work independently to keep the power factor level as high as possible without any human intervention.
How ThingsUp Energy Monitoring System(EMS) Helps Businesses to Diagnose the reason behind the Power Factor Deviation and Selecting solutions :
• Real-time energy Monitoring: Up-to-the-minute data on energy usage allows users to track consumption patterns as they happen. Real-time monitoring enables quick identification of abnormal usage patterns or inefficiencies, facilitating timely intervention and optimization. So they can take immediate action to reduce energy waste.
• Notification Alerts: Notify users of critical events or anomalies in energy consumption, such as sudden spikes in usage, equipment malfunctions, or deviations from predefined thresholds. These alerts can be sent via Email, SMS, or a dedicated dashboard.
• Power Factor Alert: This is a crucial aspect of electrical efficiency, and monitoring it can help identify inefficiencies in power distribution systems. Power factor alerts notify users when power factor values deviate from optimal levels, enabling corrective measures to improve efficiency and reduce energy costs.
• End-to-end Power Quality Solution: Monitoring and analysis of power quality parameters, including voltage fluctuations, harmonics, surges, and sags. Power quality solution ensures the reliability and stability of electrical systems by identifying and addressing issues that could lead to equipment damage or operational disruptions.
• Mail Reports daily: Automatically generates and sends daily energy reports by email, giving users a summary of energy usage and performance metrics. Informed about energy consumption patterns and track progress toward energy efficiency goals.
• Reduced Energy Cost: Thingsup’s Energy Monitoring Platform gives real-time insights into their energy consumption patterns. By identifying inefficiencies promptly and receiving alerts about abnormal usage, they can take immediate action to reduce energy waste and lower utility bills.