TRIBHUVAN UNIVERSITY

INSTITUTE OF ENGINEERING
PULCHOWK CAMPUS
DEPARTMENT OF MECHANICAL ENGINEERING

DEMAND SIDE MANAGEMENT

THROUGH
POWER FACTOR CORRECTION

BY:
Gaurav Sapkota (076MSESPM003)

SUBMITTED TO:
Prof. Bhakta Bahadur Ale
Department of Mechanical Engineering,
Institute of Engineering, Pulchowk Campus
Pulchowk, Lalitput

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

ENERGY RESOURCES

DECEMBER, 2020
 CHAPTER 1: INTRODUCTION
1.1 Background
In the developing world where there are problems of insufficient electricity capacity,
Demand Side Management (DSM) is one of the solutions to manage electricity consumption.
DSM includes activities that are done by end-users to modify their consumption in most
efficient way such that it benefits both utility and the customers. DSM ensures reduction in
expenses but it does not necessarily lead to decrease in the total energy consumption. DSM
is done through implementation of various activities that aims to change the load shapes in
order to produce the desired daily, monthly or seasonal load curves. [4]
However, DSM also makes the existing power system network more complex due to the
need of constant monitoring of demand and supply. Different sensors are employed for this
purpose. Along with the incentives provided to consumers, the cost of these equipment
makes the utilities to incur further additional cost. However, the benefit of DSM outweighs
these drawbacks. [3]
1.2 Advantages of DSM
For utilities, DSM means avoiding or delaying the need to invest in new capacities,
improving the power quality, ensuring efficient generation, transmission and distribution of
energy. [4]
For the residential customer, it means reduced bills and taking advantage of the financial
incentive provided by utility company. [4]
For commercial and industrial customers, it means lower costs included in their products
price, making them more competitive on the market. [4]
DSM gives the customer a new role and freedom in shifting the demands to off-peak periods
to reduce the electricity bill, whereas providing lower costs per kWh to the utility. [4]
The electricity market would be more competitive which further decreases consumer costs
and increases system reliability. [3]
The decrease in energy production due to DSM also helps to reduce greenhouse gas
emissions and help preserve the environment. [3]
DSM can allow for a flexible management of power system and reduce transmission
congestion. [3]
Proper implementation of DSM would lead to improvement in power quality and reliability
of the power system as a whole. [7]

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1.3 Techniques for DSM
DSM effectively consists of three broad methods, namely energy efficiency, demand
response and strategic load growth. [3].
1. Energy Efficiency
Energy efficiency refers to the long-term strategy that focuses on saving energy to reduce
the demand by using energy-efficient techniques. The implementation of these programs
helps to decrease the demand during peak hours as well as postpone the need for
expanding power system. Some of the strategies include:
(a) Improving the transmission and distribution efficiency through voltage regulation,
power factor correction, distributed generation and others.
(b) Weatherization of buildings. [3]
(c) Notification for penalty for low power factor and incentive for maintaining power
factor closer to unity for all consumers will provide significant gains to utility in
terms of energy conservation. [5]
2. Demand Response
This is also called flexible load shape due to the flexibility exhibited due to the activities.
Demand Response is the short-term load manipulation technique that changes the energy
consumption pattern of the end-use consumers. Consumer benefit by getting different
types of incentives, mainly economic, when they participate in these activities. The major
activities performed for demand response are:
(a) Valley filling to build loads during off-peak periods
(b) Peak clipping to reduce loads during peak periods
(c) Load shifting to shift load from peak periods to off-peak periods. [3]
The above activities can be performed by implementing various programs. Some of them
are:
(a) Interruptible load program where the consumer accepts service interruptions for short
duration of time. [3]
(b) Direct load control program where the utility directly interrupts or reduces consumer
power supply during peak period. [3]
(c) Demand bidding program where consumer bid for specific load curtailments. [3]
(d) Real Time pricing program where the price varies according to supply and demand.
[3]
(e) Use of smart metering and appliance can aid in real time-pricing. [8]
(f) Conservative voltage reduction. [9]
3. Strategic Load Growth
Strategic Load Growth is implemented when the supply exceeds the demand. The utility
provides heat pumps, thermal storage and promotional rates in order the increase the
demand on the system. The advent of electric vehicle also aids this program. [3]

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1.4 Challenges for DSM
Lack of infrastructure such as smart metering, communication and information technologies
and control methods in power system. [8]
Inability to quantify the cost and benefits due to DSM which makes it difficult to understand.
[8]
The power system ends up being more complex due to introduction of DSM. [8]
Inappropriate market structures and lack of incentives also is a huge challenge for DSM. [8]
1.5 Power Factor
Power factor is the ration between the KW and the KVA drawn by an electrical load where
the KW is the actual load power and the KVA is the apparent load power. It is a measure of
how effectively the current is being converted into useful work output and more particularly
is good indicator of the effect of the load current on the efficiency of the supply system. [6]

Apparent Power (S)

Measured in VA 𝑇𝑟𝑢𝑒 𝑃𝑜𝑤𝑒𝑟
𝑃𝑜𝑤𝑒𝑟 𝐹𝑎𝑐𝑡𝑜𝑟 =
𝐴𝑝𝑝𝑎𝑟𝑒𝑛𝑡 𝑃𝑜𝑤𝑒𝑟
Reactive Power (Q)
Measured in VAR

Impedance
Phase Angle

True Power (P)

Measured in Watts

Fig 1.1: Power Triangle

A poor power factor can be the result of either a significant phase difference between the
voltage and current at the load terminals, or it can be due to a high harmonic content or
distorted/ discontinuous current waveform. [6]
A poor power factor can be the result of the following:
1. Due to phase difference of current and voltage at load terminals.
a. Inductive Load: Like induction motor, furnace, power transformer, lighting ballasts
and weilder. In inductive load current lags voltage by an angle Φ.

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 Fig 1.2: Current lagging voltage by an angle Φ

b. Capacitive Load: Like inverter. In capacitive load current leads voltage by an angle
Φ.

Fig 1.3: Current leading voltage by an angle Φ.

2. Due to high harmonic content

Source impedance can interact with harmonic currents an cause unwanted voltage
distortion or the source inductance and shunt capacitance may match to form tank circuit.
If the resonant circuits occur at integer multiples of the fundamental frequency then all
sorts of mayhem may occur, such as fuses blowing us, breakers tripping, capacitors
blowing up, and loads tripping off-line. [1, 6]
1.6 Causes of Low Power Factor
The electrical power system mainly consists of resistive and inductive loads. The main
reason for the low power factor are these inductive loads. The causes that results in the low
power factor are listed below: [1, 6]
i. Most of the ac motors and generators operate at lagging power factor. The power
factor falls with the decrease in load.
ii. Arc lamp and electric discharge lamp operate at low power factor.

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 iii. Due to increased supply mains voltage during low load period, magnetizing
current increases and the power factor comes down.
iv. Industrial heating furnace such as arc and induction furnace operate at very
lagging power factor.
v. The power factor in motors fall largely due to improper maintenance and repair
of motor.
1.7 Effects of Low Power Factor
The problems that we encounter due to low power factor are listed below: [1, 6]
i. Large line losses (copper losses)
ii. Large kVA rating and size of electrical equipment
iii. Greater conductor size and cost
iv. Poor voltage regulation and large voltage drop
v. Low efficiency of electrical equipment
vi. Penalty from electric power supply company on low power factor
1.8 Improving the Power Factor
The following methods of power factor correction for eliminating the lagging current due
to inductive load are presently in use. [6]

1. Static Capacitor
Most of the industries and power system loads are inductive that take lagging current
which decrease the system power factor. For power factor improvement purpose, static
capacitors are connected in parallel with those devices which work on low power factor.
These static capacitors provide leading current which approximately neutralizes the
lagging inductive component of load current. These capacitors are installed in vicinity
of large inductive load e.g. Induction motors and transformers etc.

Fig 1.4 : Static Capacitor

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 Advantages of using static capacitors for power factor correction:
• Losses are low in static capacitors.
• There is no moving part, therefore requires low maintenance.
• It can work in normal conditions (i.e. ordinary atmospheric conditions).
• Does not require a foundation for installation.
• They are lightweight so it is can be easy to install.
2. Synchronous Condenser
When a Synchronous motor operates at no-load and over-exited then it’s called a
synchronous condenser. Whenever a synchronous motor is over-exited then it provides
leading current which eliminates the lagging current. This partially eliminates the re-
active component and power factor is improved. Generally, synchronous condenser is
used to improve the power factor in large industries.
Advantages of using synchronous condenser for power factor correction:
• Long life (almost 25 years).
• High Reliability.
• Step-less adjustment of power factor.
• No generation of harmonics of maintenance.
• The faults can be removed easily.
• It’s not affected by harmonics.
• Require Low maintenance as only periodic bearing greasing is necessary.
Disadvantages of using synchronous condenser for power factor correction:
• It is expensive (maintenance cost is also high) and therefore mostly used by large
power users.
• An auxiliary device has to be used for this operation because synchronous motor
has no self-starting torque.
• It produces noise.

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 CHAPTER 2: OBJECTIVE OF THE STUDY
The main objective of the research is to study the benefits of DSM through power factor
correction.
The specific objectives of the research are:
1. Calculate the value of current for different power factors.
2. Calculate the requirement of transformers and transmission line according to different
values of current.

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 CHAPTER 3: METHODOLOGY
3.1 Methodology Flowchart

Literature Survey

Calculation of Current
Before Power Factor
Correction

Calculation of Current
After Power Factor
Correction

Conclusion

Fig 3.1: Methodology Flowchart

The project started with a literature survey. Detail study about demand side management,
power factor and its calculation techniques were carried out. And from further research, the
value of current flowing through the circuit was found to be one of the major factors in
selection of transmission line and transformers. The difference in value of current was
calculated to find the effect on cost on line and transformer.

3.2 Method for Calculating the Value of Current

We need a wattmeter for measuring true power, its reading can be compared against a
calculation of apparent power obtained by multiplying supply voltage and current drawn by
measurements. The obtained value of true and apparent power can be used to determine
power factor.
True Power (P) = Wattmeter Reading
Apparent Power (S) = Supply Voltage (V) * Ammeter Reading (I)
𝑃
Power Factor = 𝑆

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After power factor correction using capacitors, the ammeter reading is again taken. But in
our case, we assume the power factor has been corrected to 0.8 and use the above formula
to calcuate the value of current.

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 CHAPTER 4: FINDINGS OF THE STUDY
4.1 Calculation of Current
The circuit was arranged as shown in the figure below and the wattmeter reading along with
the ammeter reading was recorded.

Fig 4.1: Circuit Diagram

Wattmeter Reading = 1.5KW

Ammeter Reading = 9.615 A (rms)

True power is given by wattmeter. And the product of Voltage (provided by voltmeter) and
Current (provided by ammeter) yields apparent power. Apparent Power is denoted by S.

S=I*E
= 9.615A * 240V
= 2.308 KVA

As we can see, 2.308 kVA is a much larger figure than 1.5 kW, which tells us that the power
factor in this circuit is rather poor (substantially less than 1). Now, we figure the power factor
of this load by dividing the true power by the apparent power:

P 1.5KW
Power Factor = S = 2.308 KVA = 0.65

Now, if we use capacitor banks for power factor correction and increase the power factor to
0.8.

𝑃 1.5
S = 𝑃𝑜𝑤𝑒𝑟 𝐹𝑎𝑐𝑡𝑜𝑟 = 0.8 = 1.875

Hence, the new value of current will be

𝑆 1.875
I = = = 7.8125𝐴
𝐸 240

Hence, we can clearly see that the value of current in the circuit decreases after power factor
correction.

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4.2 Effect of Value of Current on Transmission Line

Fig 4.2: Conductor Data for ACSR Conductors

As we can see from the above table, with the increasing value of current the radius of the
conductor increases. This increases our tranmission line cost. Hence, lower value of current
helps in lowering the cost of conductor.
Furthermore, the loss in the tranmission line is calculated as:
Loss = I2 x R
Hence, we can further see that the loss in tranmission line is decreased due to decrease in
value of current.
4.3 Effect of Value of Current of Transformer Rating
The KVA rating of transformer can be calculated as:
𝑉𝑜𝑙𝑡𝑎𝑔𝑒 × 𝐶𝑢𝑟𝑟𝑒𝑛𝑡
KVA Rating = 1000

Hence, if the value of current is lowered for the same supply voltage, we can see that
transformer of much lower KVA rating can be used. This helps in cost saving. Furthermore,
the need to upgrade the transformer can also be reduced due to DSM.

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 CHAPTER 5: DISCUSSIONS AND CONCLUSIONS
5.1 Limitations
Limitation of our project is listed below:
• Due to coronavirus restriction, the above project was not conducted in the field.
5.2 Conclusion
Demand Side Management is possible through power factor correction. The increase in
power factor close to unity will lead to decrease in current in the circuit. The low value of
current decreases the loss in the system and equipment of lower rating can be used. This also
postponed the need to upgrade the system according to increasing demand.

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 REFERENCES
[1] Bhattacharyya, S., Choudhury, A., & Jariwala, H.R. (2011). Case Study on Power Factor
Improvement. ISSN: 0975-5462. Vol 3 No, 12. International Journal of Engineering
Science and Technology
[2] Ellahi, M., Qureshi, S.A., & Iqbal, M. (2013). Power Factor Monitoring and Load
Management Using Smart Metering Techniques. 2(12).
[3] Jabir, H.J., Teh, J., Ishak, D. & Abunima, H. (2018) Impacts of Demand-Side
Management on Electrical Power Systems: A Review
[4] Javor, D., & Janjic, A. (2016). Application of Demand Side Management Techniques in
Successive Optimization Procedures. 19, 40-51.
[5] Mukhopadhyay, S., & Rajput, A.K. (2010). Demand Side Management and Load
Control – An Indian Experience. Power and Energy Society General Meeting, 2010
IEEE. Doi: 10.1109/PES.2010.5589589
[6] Sapkota, G., Dumre, S., & Basnet, N. (2016). Design and Fabrication of Power Factor
Correction Device
[7] Sinha, A., Neogi, S., Lahiri, R.N., Chowdhury, S., Chowdhury, S.P., & Chakraborty, N.
(2011). Role of Demand Side Management for Power Distribution Utility in India
[8] Strbac, G. (2008). Demand Side Management: Benefit and Challenges.
https://doi.org/10.1016/j.enpol.2008.09.030
[9] Zhang, N., Ochoa, L.F., & Kirschen, D.S. (2011). Investigating the impact of demand
side management on residential customers. IEEE/PES Innovative Smart Grid
Technologies ISGT Europe 2011. doi: 10.1109/ISGTEurope.2011.6162699

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