One method to improve your power factor is by adding power factor correction capacitors to your plant distribution system.
When apparent power (kVA) is greater than working power (kW), the utility must supply the excess reactive current plus the working current. Power capacitors act as reactive current generators. By providing the reactive current, they reduce the total amount of current your system must draw from the utility.
Another method is to install equipment that has a good power factor rating - for example, adding an adjustable speed drive to a lightly or variably loaded induction motor. Whenever specifying new equipment, the power factor of the equipment should be considered. While initial costs might be higher, it is often more economical in the long run to purchase equipment with a higher or better power factor
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