MODULE 5

LEARNING OBJECTIVES
In this module you will learn about:

General Objectives:

MANAGEMENT
L Demand Management

Specific Objectives:

DEMAND
L Active and Reactive Power Demand and Energy,
L Three-Phase Systems,
L Power Factor,
L Power Factor Correction,
L Demand Management,
L Load Factor,
L Load Shedding,
L Load Shifting.

Performance Objectives:
After successful completion of this module you will be able to perform
the following:

L Measure 1-phase and 3-phase electrical power and energy,

L Monitor plant load profiles,
L Calculate benefits of power factor correction,
L Evaluate the benefits of demand management.

SADC Industrial Energy Management Project

Implemented by AGRA Monenco Atlantic Limited for the Canadian International Development Agency
 Module 5
Demand Management

TABLE OF CONTENTS
1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 ELECTRICAL FUNDAMENTALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.1 Ohm's Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.2 Alternating Voltage and Current . . . . . . . . . . . . . . . . . . . . . . . 2
2.3 Active or Virtual Voltage . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.4 Power andEnergy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.5 Three Phase Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.6 Three Phase Power and Energy . . . . . . . . . . . . . . . . . . . . . . 5
2.7 Worked Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.0 POWER FACTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.1 Low Power Factor - Cost to Suppliers . . . . . . . . . . . . . . . . . . 8

3.2 Low Power Factor - Cost to Consumers . . . . . . . . . . . . . . . . . 9
3.3 Power Factor Correction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.4 Capacitor Installations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.5 Sizing Capacitors - Worked Example . . . . . . . . . . . . . . . . . . 10

4.0 DEMAND MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

4.1 Load Factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

4.2 Load Profile Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.3 Load Shifting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.4 Load Shedding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.5 Worked Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

5.0 ASSIGNMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6.0 SUMMARY - Module 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

 MODULE 5
DEMAND MANAGEMENT
1.0 INTRODUCTION

An understanding of the way in which electrical energy is utilized in your plant is

essential for an effective energy management programme.

Electricity from the supply utility is delivered on demand to a service entry point
within consumers premises, where it is metered and distributed to end users. In
large plants the service entry point may be a substation with transformers to lower
the voltage to a level suitable for the equipment.

Motors, lighting and heating loads are the main consumers of electrical energy in
industrial plants. The number and size of these loads in service at a plant will
determine the amount of active and reactive energy supplied by the electricity
supply authority and subsequently the size of the energy bills.

This module discusses the relationship between the loads and energy, and power
factor, and covers ways of reducing the power demand and electricity bills.

2.0 ELECTRICAL FUNDAMENTALS

2.1 Ohm's Law

When a Load of Z (ohms) (e.g. a motor, lamp, or heater) is connected across a

Voltage V (volts), a Current of I (amperes) will flow through the load according to
Ohm's Law (see Figure 5.1):

V
I '
Z

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2.2 Alternating Voltage and Current (ac)

The voltages generated by supply utilities in the SADC countries oscillate

sinusoidally with a cyclic rate of 50 cycles per second (50 Hz), as illustrated in
Figure 5.1.

When such an alternating voltage is applied to a circuit as shown in Figure 5.2, an

alternating current (ac), i, will be caused to flow between the supply and the loads;
first in the forward direction, i.e. the positive direction (i-positive), and then in the
reverse or negative direction (i-negative). This cycle of change will be repeated
100 times a second; 50 times in the positive direction and 50 times in the negative
direction. As loads are paralleled across the voltage the current i will increase
proportionally.

Figure 5.2

Figure 5.3
EFFECTIVE OR RMS VOLTAGE

2.3 Active or Virtual Voltage

The active or virtual value of an alternating voltage, as measured by a voltmeter,

is the Root Mean Squared (RMS) value of the alternating voltage. It is derived from
the square root of the average squared value of the waveform, and is the same as
the direct current (dc) value that would provide the same amount of heating of a
resistive load. For a pure sinusoidal waveform it can be seen from Figure 5.3 that:

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v Max
VRMS ' ' 0.707
2
Similarly for a sinusoidally alternating current:
iMax
IRMS ' ' 0.707
2
Unless otherwise noted, further references to voltage and current imply RMS
values.

2.4 Power and Energy

Energy is the capacity for action or work. Power is defined as the rate of energy
conversion. In an ac circuit the total power input from the supply at any instant in
time is:
p ' v × i
where: p, v and i are instantaneous values.

Figure 5.4 Figure 5.5

RESISTIVE CIRCUIT INDUCTIVE CIRCUIT

Figure 5.6
INDUCTIVE - RESISTIVE CIRCUIT

Waveforms of instantaneous current, voltage and total power flowing in

resistance and inductive circuits are illustrated in Figures 5.4, 5.5 and 5.6. Note

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that current in phase with the supply voltage results in positive power or active
power, i.e. power that flows into the load and is dissipated as heat energy. Power
resulting from current that is 90E (¼ phase) out of phase with the voltage alternates
equally between positive and negative. This illustrates that alternating power or
reactive power flows backwards and forwards between the supply and the load.
In other words the reactive energy is stored temporarily (for ¼ cycle) in the
inductance and then flows back to the supply. The active power is always in
phase with the supply voltage and the reactive power is always 90E (leading or
lagging) out of phase with the supply voltage. This relationship is illustrated in
power triangle, Figure 5.7, with effective or RMS values used, where:

Total Power Pt ' V × I VA

Active Power Pa ' V × I Cos Ø Watts

Reactive Power Pr ' V × I Sin Ø VAr

where: O
/ is the phase displacement between the supply voltage and the circuit current.

The circuit Power Factor is the ratio of the active power to the total power:

Active Power
Power Factor PF '
Total Power

' Cos Ø

The more reactive power demanded by a plant, due to motor loads say, the lower
will be the power factor.

Figure 5.7
POWER TRIANGLE

2.5 Three Phase Systems

A 3-phase system is an ac circuit or network with 3 supply voltages of the same

frequency but displaced in time by 120E ( a third of a cycle) as shown in Figure 5.8.
A 3-phase generator comprises 3 single phase generators angularly placed around
the same shaft. A 3-phase motor has three separate windings spaced round the
stator. When the 3 phase system of voltages are equal in magnitude the system
is said to be symmetrical. When the currents in a star (wye) connected load

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(lighting systems) are balanced there will be zero neutral current (Figure 5.9). In
the mesh (delta) connected load (motors) there is no neutral conductor. The
voltage across each phase load is the vectorial sum of two phase to neutral
voltages.

It can be shown that in a star connected load:

Line Voltage VL ' 3 VA OR ' 3 VB OR ' 3 V

LineCurrent IL ' IA OR ' IB OR ' IC

Also, that in a delta connected load:

Line Current IL ' 3 IA OR ' 3 IB OR ' 3

LineVoltage VL ' VA OR ' VB OR '

The advantages of a 3-phase system over a single-phase system are:

< For a given physical size, motors have higher outputs,

< Less copper is used to transmit the same power,
< Motors have uniform rather than pulsating torques,
< Motors are self starting.

Figure 5.8
3-PHASE WAVEFORMS

2.6 Three Phase Power and Energy

The total power in a three phase circuit is the sum of the power demands of the
individual phases:

Total Power Pt ' VA × I A % V B × IB % VC × I C

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Assuming a symmetrical, i.e. balanced system, either star or delta connected load:

Total Power: Pt ' 3 × V A × IA VA

VL
For a Star load: VA ' , and IA ' IL
3

IL
For a Delta load: IA ' , and VA ' VL
3

3 × VL × I L
ˆ Pt ' VA
3

' 3 × VL × I L VA

Active Power Pa ' 3 × VL × I L × Cos Ø Watts

Reactive Power Pr ' 3 × VL × I L × SinØ VAr

Figure 5.9
3-PHASE SYSTEM CONNECTIONS

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2.7 Worked Example

The supply utility provides a plant with 3-phase, 600 volt power. The actual phase
to phase voltages (line voltages) were measured at 598V, 599V and 600V respect-
ively.

The measured three phase voltages, currents, and power factor levels were:

A Phase B Phase C Phase

Voltage 345V 346V 346V
Current 220A 218A 215A
Power Factor 0.85 0.84 0.85

Total Power:
Pt ' VA × I A % VB × I B % VC × I C

' 345 × 220 % 346 × 218 % 346 × 215 VA

' 225.72 kVA

Active Power:
Pa ' V A × IA × Cos iA % V B × IB × Cos iB % V C × IC × Cos iC

' 345 × 220 × 0.85 % 346 × 218 × 0.84 % 346 × 215 × 0.85

' 191.1 kW

Reactive Power:
Pr ' V A × IA × SiniA % V B × IB × SiniB % VC × IC × Sin iC W

[Where: Sin i ' (1 & Cos 2i)]

' 345 × 220 × 0.53 % 346 × 218 × 0.54 % 346 × 215 × 0.53

' 120.39 kVAr

These results can be checked using the formula:

kVA 2 ' kW 2 % kVAr 2

As the plant 3-phase loads are reasonably balanced (220A, 218A, 215A);
comparable results can be obtained by using the 3-phase formulae:

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Total Power Pt ' 3 × VL × I L

' 3 × 599 × 218 VA

' 226.17 kVA

Active Power Pa ' 3 × VL × I L × Cosi

' 3 × 599 × 218 × 0.85 W

' 192.25 kW

Reactive Power Pr ' 3 × VL × I L × Sini

' 3 × 599 × 218 × 0.53 kVAr

' 119.87 kVAr

Assuming that conditions are constant over a 24 hour period, the energy expended
by the load over that period will be:

Active Energy ' 226.17 kW × 24 hrs

' 5,428 kWh

3.0 POWER FACTOR

The power factor level of an industrial plant is an indication of the amount of

reactive power the plant demands. A plant with induction motors will require
lagging reactive power. A plant with a capacitive load will require leading reactive
power. Supply authorities generally require consumers to restrict their reactive
power demand such that their power factor level is maintained above 0.9.
Defaulters are subject to significant cost penalties.

3.1 Low Power Factor - Costs to the Supplier

! With a power factor less than unity, the amount of useful power that can be
supplied by the supply system's generating plant will be less than its full total
power capacity. In other words, although the generators may be delivering their
full current capacity, not all of this current results in useful power. The same
applies with the current carrying capacity of system cables, transformers and
in fact all equipment located between the generators and the consumer with the
low power factor.

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! Reactive power actually costs something to produce at the generating station.

It also increases transmission and distribution losses.

! A poor power factor causes a large drop of volts in the generators requiring
larger exciters.

! The voltage drop of an overhead transmission line increases with a decrease

in power factor level.

3.2 Low Power Factor - Cost to the Consumer

! Electricity Costs

When demand charges are based on the total power demand (kVA), then costs
are inversely proportional to the power factor level, i.e. a low power factor
results in higher costs.

The cost of electricity to consumers whose demand charges are based on their
kW or active demand is unaffected by the level of the plant power factor,
unless there is a low power factor penalty provision in their tariff agreement.

Improving the power factor level can save thousands of dollars in electrical
costs.

! Voltage Levels

A low power factor level causes poor voltage regulation resulting in inefficient
operation of equipment such as motors and lighting.

3.3 Power Factor Correction

To produce the lagging reactive power required by inductive loads (motors), the
supply authority must over-excite their generators to make them more capacitive.
To produce the leading reactive power required by capacitive loads like
transmission lines, the supply authority under-excite their generators to make them
more inductive.

Lagging reactive power can equally well be generated by capacitors installed local
to the load, reducing the reactive power demanded from the supply utility and thus
lowering the overall plant power factor and the associated charges. Significant cost
savings on electrical bills can be realized by maintaining plant power factor levels
as high as possible. A power factor of unity is the optimum level, but this is not
always feasible.

3.4 Capacitor Installations

Ideally power factor correction capacitors should be matched with and located as
close as physically possible to the inductive equipment, e.g. connected to the

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terminals of motors, etc. This would minimize plant distribution losses caused by
transmission of the reactive current between the equipment and the capacitors.
Also, additional switchgear would not be required for the capacitors.

When capacitance is switched with a motor load, correction should be limited to no

more than 0.95 to ensure self-excitation of the motor does not occur. Economics
dictate that individual compensation is generally only feasible with larger motors,
say in excess of 30 kW. But each case must be considered individually. In most
plants the more practical solution is to install capacitor banks, with a control unit,
at the main service entrance board. The control unit senses the power factor level,
which changes with the load, and automatically switches the required capacitors in
and out of service to maintain the power factor level within prescribed limits.

Power factor capacitors have the potential for causing significant damage to
existing equipment from over-voltages and the capacitors themselves are
vulnerable to effects of harmonics. Installation should only be carried out by
experts.

3.5 Sizing Capacitor Installations (Worked Example)

A consumer has a maximum demand of 100 kVA at a power factor of 0.8.

Calculate the rating of the capacitors required to correct the power factor level to
0.95 at the same useful power demand.

! Step 1 - Calculate the Active Power Demand

Useful Power
Power Factor '
Total Power

ˆ Useful Power ' 0.8 x 100

' 80 kW

! Step 2 - Calculate the existing Reactive Power Demand at 0.8 power factor:

kVAr 2 ' kVA 2 & kW 2

ˆ Reactive Power ' 1002 & 802

' 60 kVAr

! Step 3 - Calculate the Total Power at the corrected power factor of 0.95:

It should be appreciated that as no production changes have been made, the

useful power demanded by the consumer will remain unchanged at 80kW.

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Useful Power
Total Power '
Power Factor

80
' kVA
0.95

' 84.2 kVA

! Step 4 - Calculate the reactive power at the corrected power factor 0.95.

kVAr 2 ' kVA 2 & kW 2

' 84.22 & 80.02

' 26.3 kVAr

! Step 5 - Calculate the required capacitance to correct power factor to 0.95.

< Useful active power demand = 80 kW

< Reactive power demand at 0.8 power factor = 60.0 kVAr
< Total power at 0.8 power factor = 100 kVA
< Reactive power demand at 0.95 power factor = 26.3 kVAr
< Total power at 0.95 power factor = 84.2 kVA
< Capacitor Rating required (60.0 - 26.3) = 33.7 kVAr

This is illustrated in Figure 5.10.

If the consumer changed his useful power demand, to say 60 kW, but the plant
power factor (uncorrected) remained at 0.8, then less capacitance would be
required to correct to 0.95. Repeating the above exercise will show that the
required capacitance would be 25.3kVAr.

Conversely if the useful power demand increases, the amount of capacitance

required will also increase. It is therefore necessary to ensure that plant
maximum load demands are considered in the calculations.

Figure 5.10

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4.0 DEMAND MANAGEMENT

Demand management is an exercise in flattening or averaging out the plant

demand profile curve as much as is possible. This may be implemented by shifting
loads and/or shedding non-essential loads. The extent of demand management
may be dictated by the need to maintain production. However, plant management
may decide that the cost benefits resulting from demand control adequately
compensate for production disruptions.

4.1 Load Factor

Load factor is defined as the ratio of average active load (kW) to the maximum kW
demand over a day, month or year and serves as an indicator of the effectiveness
with which electricity demand is managed. A load factor of 100% indicates that the
plant demand is constant, the demand profile being a straight line, e.g. a plant with
a maximum demand of 100 kW and energy consumption of 2,400 kWh over a 24
hour period.
2400 kWh
Load Factor ' x 100 ' 100 %
100 kW x 24 hrs

With a tariff including both energy and demand charges, a higher load factor will
result in lower electricity costs per kWh consumed.

4.2 Load Profile Analysis

The analysis of the profile curve of a plant load over a typical 24 hour period will
establish the potential for demand management.

A load profile can be drawn from plant demand levels recorded at specific times
throughout the plant production period. Plant kW demand can be obtained from
timing revolutions of the tariff kWh meter as described in Module 4. The frequency
of kW readings required will depend on the nature of the plant load.

The individual plant load schedules will establish which loads contribute to the peak
demands. Discussions with plant operators will indicate the feasibility of shedding
or shifting these loads to periods of low demand.

A demand recorder, monitoring the plant supplies will provide a more detailed and
accurate load profile.

4.3 Load Shifting

Figures 5.11 and 5.12 illustrate how the plant peak demand can be reduced by
shifting loads. The maximum demand has in fact been reduced by 30 kW. It
should be noted that although a reduction in demand has resulted there is no
reduction in the energy consumption. The electrical energy consumption has been

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shifted in time and the area under the profile curve remains constant. The result
is that the plant load factor has been increased and the cost of electricity has been
reduced. There may be operational costs associated with rescheduling production
and the plant management must take these into account when considering overall
cost benefits.
Figure 5.11 Figure 5.12
LOAD SHIFTING (BEFORE) LOAD SHIFTING (AFTER)

4.4 Load Shedding

Some plant management have a policy that the demand must not exceed a set
level. Such a policy, normally found in plants with very large demands, may be
necessary because of limitations of the plant electrical system, or to take
advantage of special reduced tariff charges offered by the supply utility.

In such cases a demand controller is employed to continuously monitor the plant

energy consumption. The controller forecasts the current block interval demand
from the rate at which energy is consumed, and computes the load changes
necessary to ensure that the block interval demand meets the target demand.
Preselected loads, initially non-essential loads, will accordingly be manually or
automatically switched. This is shown in Figure 5.13.

Figure 5.13
BLOCK INTERVAL MAX DEMAND CONTROL

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Typical non essential loads that must be energised for a certain amount of time
every day but may be shed at peak periods include water heaters, personnel air
conditioning, sewage pumps, water pumps.

Load shedding also reduces the energy consumption of the plant.

4.5 Worked Example

The typical daily kW demand profile for an industrial plant is indicated in the figure
below. Demand charges are $22.00 / kW / month.

It was decided to investigate the possibility of rescheduling some plant operations

to periods in the day when the demand is low to reduce the maximum demand and
the demand costs (per Figures 5.14 and 5.15).

Review of the plant operating schedules and loads established that an independent
production line with a 200 kW demand could be shifted from the peak demand
period to the low demand period without affecting production.

The cost savings resulting from the reduction in demand would amount to:

= $22.00/kW x 200 kW/month x 12 months/year

= $52,800 per annum.

Figure 5.14 Figure 5.15

EXISTING PLANT PROFILE PROPOSED PLANT PROFILE

5.0 ASSIGNMENT

! Plant Power Distribution

Draw a Single Line Diagram of your plant electrical distribution system. An

example is shown in Figure 5.16. This diagram will be a useful tool for energy
management in your plant.

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! Plant Demand

Record your plant demand profile, using the SmartReader current monitor
provided in the Audit Kit, and maintain a schedule of plant loads over a seven
day period.

Investigate the feasibility of load shedding or load shifting to reduce the plant
peak demand. Where the plant load schedule is not available it may be
necessary to record demand profiles for each of the plant feeders (ref. Plant
Single Line Diagram) to identify loads contributing to peak demands. Calculate
the potential demand and cost savings.

! Power Factor

Measure and record your plant power factor at maximum demand. Calculate
the capacitance required to improve the plant power factor to 0.98, as outlined
in Section 4.5. Calculate the demand and cost savings.

On existing power factor correction capacitors, measure the capacitor current

when the capacitors are in service. Compare with the capacitor rated current
on the capacitor nameplate or derived from the equation:

Capacitor kVAr Rating (Nameplate)

Capacitor Current ' Amps
Voltage Across Capacitor x 1000

Figure 5.16
TYPICAL SINGLE LINE DIAGRAM
OF PLANT DISTRIBUTION SYSTEM

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6.0 SUMMARY - Module 5

In this module you have learned about:

L Ohm's Law
L Alternating Current and Voltage
L Actual or Virtual Voltage
L Power and Energy
L Three-Phase Systems
L Power Factor and Load Factor
L Demand Management
L Load Profile Analysis
L Load Shifting and Shedding

You should now be able to perform the following tasks:

L Calculate Active, Reactive and Total Power Demand
L Calculate Total Power Reduction with Corrected Power Factor
L Calculate Required Capacitance to Correct Power Factor
L Investigate Feasibility of Improving Plant Power Factor
L Identify Plant Loads Contributing to Plant Maximum Demand
L Investigate Load Shedding Feasibility to Reduce Maximum
Demand

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