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Australian Building Codes BoardPower Factor Correction Evaluation Peter KoulosDean Eislers12 July 200204 Sept 2002C19 July

2002ReportClient SubmissionAustralian Building Codes Board NORMAN DISNEY & YOUNG Level 10 1 Chandos Street ST LEONARDS AUSTRALIA 2065+61 2 9928 6800 +61 2 9439 6580 sydney@ndy.com http://www.ndy.comNDY MANAGEMENT PTY LIMITED ACN 003 234 571 ABN 76 117 642 471 QUALITY ENDORSED COMPANY ISO 9001 LIC 1608/01 STANDARDS AUSTRALIA`W:\s26793-001e-\24\rp00201s.doc

REPORT
Power Factor Correction Evaluation

Australian Building Codes Board

`
Revision: Issued: C 04 Sept 2002

NORMAN DISNEY & YOUNG 1 Chandos Street, ST LEONARDS Telephone :+61 2 9928 6800 Facsimile : +61 2 9439 6580 Email : sydney@ndy.com WEB : http://www.ndy.com

COPYRIGHT
Copyright 2002 by Norman Disney & Young All rights reserved. No part of the contents of this document may be reproduced or transmitted in any form, or by any means, by parties other than those employed or engaged by the Australian Building Codes Board, and only in direct connection with the purpose for which this document has been provided by Norman Disney & Young, without the written permission of Norman Disney & Young.

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AUSTRALIAN BUILDING CODES BOARD POWER FACTOR CORRECTION EVALUATION REPORT

Table of Contents

1
2

Executive Summary..........................................................................................1

Introduction .......................................................................................................2

2.1 2.2 2.3 2.4 2.5 2.6 Objectives of Study .............................................................................................................2


Authority..............................................................................................................................2

Information Sources............................................................................................................2

Outline.................................................................................................................................2

Definitions and Terms.........................................................................................................3

Revision History ..................................................................................................................3

Power Factor Correction ..................................................................................4


3.1 Introduction .........................................................................................................................4



Figure 1 Power triangle showing relationship between real power, reactive power, apparent

power and power factor..................................................................................................................4

Figure 2 Model of a typical load ..................................................................................................4

Figure 3 - Effect of power factor correction on line current............................................................5

Figure 4 Line currents at various points in power network .........................................................6

3.2 Resonance..........................................................................................................................6

3.3 Ripple Control .....................................................................................................................6

3.4 Heat Load ...........................................................................................................................7

4 5

Applications ......................................................................................................8

Energy retailer tariff structures & requirements ............................................9

5.1 Electricity Prices..................................................................................................................9



Table 1 - Central Business Districts and their associated franchises (as at July 2002) ................9

Table 2 - Regional centres and their associated franchises (as at July 2002) ............................10

Figure 5 - Average electricity retail prices by State 2001/2002 ...................................................10

Figure 6 Domestic Electricity Prices 2001/2002 .......................................................................11

Figure 7 Business electricity prices 2000/2001 ........................................................................11

Figure 7 Business electricity prices 2000/2001 ........................................................................12

5.2 Minimum Power Factor Specifications .............................................................................13

Table 3 National Electricity Code Permissible Power Factor Ranges (Table S5.3.1) ..............13

Table 4 Distribution Network Service Providers and their Power Factor Requirements ..........14

Table 5 Victorian Power Factor Requirements (all Network Service Providers) ......................15

Table 6 South Australian Power Factor Requirements (ETSA)................................................15

Expected and Recommended Power Factors and Maximum Loads ..........16


6.1 6.2 Recommended Power Factor ...........................................................................................16



Where to install PFC equipment .......................................................................................16

Typical Efficiencies of Electric Motors in the Building Industry.................23


7.1 Typical efficiencies............................................................................................................23



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Table of Contents
Table 7 MEPS Minimum Efficiency Levels for Three Phase Electric Motors - Test Method A.25

Table 8 MEPS Minimum Efficiency Levels for Three Phase Electric Motors - Test Method B..26

Table 9 MEPS Minimum High Efficiency Levels for Three Phase Electric Motors - Test

Method A ......................................................................................................................................27

Table 10 MEPS Minimum High Efficiency Levels for Three Phase Electric Motors - Test

Method B ......................................................................................................................................28

7.2 Power factor and motor efficiency ....................................................................................29

Methods of Power Factor Correction ............................................................30


8.1 8.2 8.3 8.4 8.5 Static Correction ...............................................................................................................30



Switched Capacitor Banks................................................................................................30

Synchronous Condensers ................................................................................................30

Electronic Lighting Ballasts...............................................................................................30

Correctly Sized Motors .....................................................................................................30

9 Indicative Power Factor Correction Installation Costs and Space



Requirements .......................................................................................................... 31

Table 11 Indicative Installation Costs for 525 Volt Capacitors..................................................31



9.1 Cost savings using Power Factor Correction ...................................................................32

Table 12 Power Factor Correction Installation Payback Calculation ........................................32

9.2 Indicative Physical Space Requirements .........................................................................33

10

Conclusion ......................................................................................................34

Appendix A NEM Retail Market Participants......................................................35



Appendix B - References ........................................................................................37

Appendix C .............................................................................................................. 38

Figure 8 NSW Electricity Supply Boundaries............................................................................38



Figure 9 - ACT Electricity Supply Boundaries (single NSP) ........................................................39

Figure 10 - Energex Electricity Supply Boundaries .....................................................................40

Figure 11 - Western Australia Electricity Supply Boundaries ......................................................41

Figure 12 Victorian Electricity Supply Boundaries ....................................................................42

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AUSTRALIAN BUILDING CODES BOARD POWER FACTOR CORRECTION EVALUATION REPORT

1 Executive Summary
Electrical energy efficiency is of prime importance to industrial and commercial companies operating in today's competitive markets. Optimum use of plant and equipment is one of the main concerns that industry tries to balance with energy efficiency, for both economical and environmental reasons. As society becomes increasingly conscious of its impact on the environment, reduced energy consumption becomes more desirable, which, is an achievable goal for everyone. Through the use of measures such as power factor correction, electricity consumption is optimised, which ultimately leads to reduced energy consumption and reduced CO2 greenhouse gas emissions. This report introduces the concept of power factor correction and its use in reducing power consumption. This is followed by indicative electricity costs around Australia along with the minimum power factors required by Network Service Providers (NSPs). The expected typical power factor and maximum demands for various building forms and classes have been presented along with recommended power factors for these buildings. Motors are an integral part of many commercial and industrial buildings, and are commonly used for a number of applications including air conditioning and pumping. Efficiency requirements of electric motors have been listed for different sizes, and the benefits to both industry and society of using higher efficiency motors outlined. Finally a brief summary of power factor correction methods is presented and indicative costs of installation for the most common type of commercial developments. Within a cost conscious market, payback considerations are also important. This report identifies the most appropriate application for power factor correction based on energy consumption, tariff metering, cost payback and emission reduction. Power factor correction is an appropriate means by which to improve the power quality of an installation. Its application is dependent though on the size of the installation and the extent that power factor correction needs to be applied. The opportunity however exists to make a significant environmental contribution whilst simultaneously providing economic benefit. This report identifies such issues and concludes with the recommendation that provisions be made in the Building Code of Australia for power factor correction.

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AUSTRALIAN BUILDING CODES BOARD POWER FACTOR CORRECTION EVALUATION REPORT

2 Introduction
2.1 Objectives of Study
The objective of this report is to provide an evaluation of the application of power factor correction based on building size, type and use and whether provisions should be made for its inclusion in subsequent revisions of the Building Code of Australia.

2.2 Authority
Authority to undertake this report was provided by Dr Ernest Donnelly of the Australian Building Codes Board. Report commission date: Draft Report submission date: Final Report Submission date: 25 June 2002 19 July 2002 04 Sept 2002

2.3 Information Sources


References for this report are included in Appendix B.

2.4 Outline
This report provides:

Recommendations where power factor correction should be applied. electricity prices both domestic and commercial for capital cities and the regional centres of Cairns, Coffs Harbour, Mt Isa, Geraldton, Alice Springs, Kalgoorlie, Charleville, Albury and Wagga Wagga. minimum power factor that supply authorities specify for the aforementioned locations of various building forms designated A to E as noted in this report. range of power factors and maximum loads (in kVA) that could be expected in the various building forms A to E. efficiencies of electric motors used in the building industry and the impact of higher efficiency motors on power factor. of what minimum power factor should be set and for what building demand.

Average

The The

Typical

Estimates Indicative A

costs to install power factor correction to achieve the recommended minimum based on the building demand. recommendation on whether power factor correction should be included in the provisions.

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AUSTRALIAN BUILDING CODES BOARD POWER FACTOR CORRECTION EVALUATION REPORT

2.5 Definitions and Terms


Power factor (pf) A figure quantifying the relationship between apparent power and real power. For a linear load it also relates the phase of the current and voltage waveforms through an electrical element; pf = cos() = kW/kVA where is the angle between the current and voltage waveforms. Rate of energy dissipation in the resistive component of an electrical element. Measured in kW. The vector summation of the real and reactive power representing the total power usage. Also known as Complex Power. Measured in kVA. Rate of energy usage in the inductive/capacitive component of an electrical element. Also known as Imaginary Power. Measured in kVAR. A system is said to have a lagging power factor when the current waveform lags the voltage waveform. This is experienced with loads with a dominant inductive component. A system has a leading power factor when the current waveform leads the voltage waveform. This is experienced with loads with a dominant capacitive component. The angle where cos() = kW/kVA = pf, the ratio of real power to apparent power. For linear loads it is also the phase difference between the current and voltage waveforms. The angle needs to be qualified by stating whether it is a leading or lagging PF. A common type of motor used in industry. Its name relates to its construction and mode of operation.

Real Power Apparent Power Reactive Power

Lagging PF

Leading PF

Power Angle

Induction motor

Transmission Network The section of the network from where the electricity is produced (i.e. power station) to the distribution network. The voltages are stepped up to minimise transmission losses for subsequent downstream transmission to end-users. Distribution Network The end point of a transmission system where the voltages are stepped back down and distributed at useable voltages to customers.

2.6 Revision History


Description First Issue Second issue This Issue Revision A B C Date Issued 12 July 2002 19 July 2002 04 Sept 2002 Comment Draft Review Client Review Client Submission

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AUSTRALIAN BUILDING CODES BOARD POWER FACTOR CORRECTION EVALUATION REPORT

3 Power Factor Correction


3.1 Introduction
The power factor of a system refers to the relationship between real/working power and reactive power. It is a measure of how efficiently electrical power is being used and for linear loads it also relates the phase of the voltage waveform to the current waveform. Electrical power is composed of two orthogonal components real power (component that does the work) and reactive power (component that develops and maintains electromagnetic fields) which when added vectorally make up Apparent power. This is represented on the power triangle below.

Figure 1 Power triangle showing relationship between real power, reactive power, apparent power and power factor

VARs

Power factor

= cos () = kW kVA

= Real Power Apparent Power

Apparent Power

(Volt-Amps)

Reactive Power (VAR) Watts

Real Power (Watts)

A load typically has a resistive component and a reactive component as depicted in the figure below. Real power, measured in kW is dissipated in the resistive component performing the work of the system and provides the motion or heat. Reactive power is measured in kVARs and doesnt contribute to work as such but rather sustains the electromagnetic field required for the device to operate. It is this level of reactive power compared to real power that determines the power factor. For a heater (which is a pure resistive load) the reactive power is zero; the voltage and current waveforms are in phase, the power angle is zero and hence the power factor, pf = cos(0) = 1. For a motor that requires an electromagnetic field to operate the power factor may be around 0.8.

Figure 2 Model of a typical load

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AUSTRALIAN BUILDING CODES BOARD POWER FACTOR CORRECTION EVALUATION REPORT

Although the current through the reactive component (Ireactive) dissipates no power (and is hence not measured by a kWh meter), this current still needs to be transmitted along the distribution lines and hence will dissipate energy through other resistive components in the system (cabling, switchgear, distribution boards, etc). By generating/providing this reactive current locally through the use of power factor correction equipment, less power needs to be provided by the distribution network resulting in lower losses, improved line voltage and a lower electricity bill under a kVA tariff structure. Reactive power can be supplied via a method of power factor correction involving the installation of capacitor banks. Typically these consist of switched capacitor banks providing bulk correction to a whole building with control equipment switching the level of capacitance to optimise the power factor. Another method is static correction in which the capacitors are attached to individual pieces of equipment and are switched in and out as the device is switched on and off. The capacitors by supplying reactive power have the effect of reducing the magnitude of the line current as shown on the diagram below.

Figure 3 - Effect of power factor correction on line current


Magnetising Current (Amps) Required Equipment Magnetising Current Capacitor supplied Reactive Current

Equipment Load Current

Compensated Line Current Work Current (Amps)

Equipment Work Current

It is clear from the diagram above the effectiveness of power factor correction in reducing the line current and associated losses. The capacitance supplied by the power factor correction equipment provides reactive power locally reducing the power angle from to resulting in a reduction in the line current between the power factor equipment and the electricity network. The net effect is a reduced electrical load as seen by the electricity network and for those on kVA electricity tariffs electricity bill savings. It should be noted that while the line current between the distribution network and power factor correction equipment is reduced, the current between the power factor correction equipment and the equipment remains unaltered. Hence the power supply and associated cabling to the equipment from the power factor correction equipment needs to be sized for the original equipment requirements. This is illustrated on the following diagram.

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Figure 4 Line currents at various points in power network


Power triangle

Power triangle

11kV

415V
Distribution
Network

Main Switchboard Power Factor Correction

Load

3.2 Resonance
An important but often overlooked issue associated with power factor correction is that of resonance. A series or parallel combination of inductance and capacitance has associated with it a natural frequency at which resonance will occur. Some devices such as antennas use this property to its advantage however in a power system resonance can be very damaging. By adding capacitors in an attempt to improve the power factor, resonance with inherently inductive power lines can occur when excited by harmonics generated by electrical equipment such as switch mode power supplies commonly used in personal computers and UPS systems. The impact of resonance on a power factor correction system is that it could significantly reduce the life of the capacitors or destroy them. A solution to this is to include detuned reactors in the design of power factor correction equipment. By introducing a known reactance, the resonant frequency of the system can be chosen to filter out harmonics and improve power quality. Systems are commonly tuned to approximately 190 Hz acting as a low pass filter to limit the 5th harmonic (250Hz for 50Hz supply) and higher. Low temperature rise reactors in the detuning circuitry are recommended, to reduce heat load.

3.3 Ripple Control


Ripple control signals are used by supply authorities as a load control system for the switching of water heaters, street lighting and meter equipment. Where power factor correction capacitors are installed and the electricity distributor uses ripple control, it may be necessary for the customer to install additional equipment to block the electricity distributors ripple control signals. At audio signal frequencies, capacitors present an impedance of some 10 to 21 times less than at 50Hz. This can result in a significant portion of the signal being absorbed or lost to the system. The effect on the signal voltage of the control system is variable, depending on the size and number of capacitors and their distribution in the high and low voltage network. In the worst case the capacitor impedance may approach or equal the inductive reactance of the distribution transformer(s), to form a series resonance combination and a virtual shortcircuit on the ripple system. This undesirable and unacceptable condition can be avoided by connecting blocking inductors in the capacitor bank. Shunt capacitors used for power factor correction are likely to cause significant loss to the ripple control signal. Their impedance to the frequency must be increased by connecting either

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BLOCKER, REJECTER or STOPPER circuits to a value which will prevent interference to the electricity distributors ripple control system.1

3.4 Heat Load


Power factor correction equipment generates heat loads which requires extraction to ensure the operating temperature remains within acceptable limits. Capacitors generate in the order of 0.2W/kVAR heat load. Detuning reactors each generate approximately 100W, one of which is required per 50 kVAR bank. The following table outlines the approximate heating loads for some standard size units.

Unit Size (kVAR)


400 500 600 650

Approximate Heating Load (kWr)


900 1100 1400 1500

When choosing a location for the installation of PFC equipment, consideration to present cooling systems available in the area needs to be made.

1 Section 6 New South Wales Service and Installation Rules March 1999

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4 Applications
The major application of power factor correction is in reducing the maximum demand of apparent power (kVA) consumed by the customer as measured by the supply authority. In reducing the maximum demand the customer is able to markedly reduce their electricity bill as a result of the way energy retailers charge their customers. There is also an environmental benefit as a result of more efficient electricity use. Larger customers are billed according to not only the real power they consume but also the level of apparent power the network needs to provide to them. This structure apart from normal kWh metering also includes a maximum demand charge, which is based on kVA demand metered on a half hourly basis, which reflects the customers power factor. The customer is charged for the kilowatt-hours used but a surcharge is then applied according to the maximum kVA drawn at any one point during the billing period. As such, cost savings may be realized by reducing the maximum kVA drawn through the installation of power factor correction equipment. In residential installations, standard residential tariffs only measure the kilowatt-hours used which is unaffected by power factor and hence the use of power factor correction equipment would have no benefit to the customer in terms of reducing their bill. There would however be an environmental benefit through the reduction in power consumption due to reduced distribution losses. Typical reactive loads, such as transformers, lighting ballasts, and AC motors have a sinusoidal current flow, however the phase of the current waveform is shifted from that of the supply voltage waveform. Hence a poor power factor as a result of these loads can be improved via the addition of power factor correction. However, there are some loads that draw distinctly non-sinusoidal currents. Widespread offenders are the switch-mode power supplies in computers and phase controlled light dimmers. This commutation results in a discontinuous current waveform and subsequently increased losses on the supply. Not only is the current waveform highly non-sinusoidal, but it is also out of phase with the voltage supply. Inverters are also quite poor performers however some manufacturers claim a power factor of greater than 0.95 when in reality, the true power factor may be below 0.75. The figure of 0.95 is based on the angle between the voltage and current waveforms but neglects that the current waveform is discontinuous and therefore contributes to increased losses on the supply. A poor power factor due to a distorted current waveform as a result of non-linear loads introducing harmonics requires harmonic filters for an appreciable improvement. Thus, detuned reactors and harmonic filters need to be included in the power factor correction equipment to reduce the possibility of resonance with the supply and to reduce the aforementioned harmonics. It is clear that any business on a kVA metering tariff will benefit from power factor correction through lower electricity costs. However this may or may not be seen as an advantage depending on the payback period. For a large installation, power factor correction may cost $30,000 however may save $3000 per month in electricity costs, resulting in a pay back period of less than a year, whereas for a smaller installation the payback period may be several years and hence the capital expenditure may not be attractive to the customer.

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AUSTRALIAN BUILDING CODES BOARD POWER FACTOR CORRECTION EVALUATION REPORT

5 Energy retailer tariff structures & requirements


5.1 Electricity Prices
With the creation of the National Electricity Market (NEM) and the subsequent deregulation of electricity markets in NSW, Victoria, Queensland and South Australia, it is now possible for the vast majority of electricity customers throughout Australia to choose their retail energy supplier. As a result, customers have available to them a large number of tariff structures, a listing of which is outside the scope of this report (a listing of these retail market participants is included in Appendix B). What is more useful is a summary of average electricity prices by region, which can be related to the local Network Service Providers for those regions (although all customers may not purchase energy from their local NSP). Hence, this section outlines average energy costs for each state around Australia. The following tables list the major CBDs as well as the regional centres of Cairns, Coffs Harbour, Mt Isa, Geraldton, Alice Springs, Kalgoorlie, Charleville, Albury and Wagga-Wagga, and their associated energy retailers.

Table 1 - Central Business Districts and their associated franchises (as at July 2002) Central Business District
Sydney Brisbane Canberra Adelaide Perth Darwin Melbourne Hobart

Franchise
Energy Australia, Integral Energy Energex Actew-AGL ETSA Utilities Western Power Northern Territory Power and Water Authority (PAWA) TXU, United Energy, AGL, CitiPower, Powercor Aurora Energy

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Table 2 - Regional centres and their associated franchises (as at July 2002) Regional Centre
Albury, New South Wales Coffs Harbour, New South Wales Wagga Wagga, New South Wales Charleville, Queensland Cairns, Queensland Mt Isa, Queensland Kalgoorlie, Western Australia Geraldton, Western Australia Alice Springs, Northern Territory

Franchise
Country Energy Country Energy Country Energy Ergon Energy Ergon Energy Ergon Energy Western Power Western Power Northern Territory Power and Water Authority (PAWA)

The following graphs depict average energy prices around Australia by region.

Figure 5 - Average electricity retail prices by State 2001/20022


Note: Total average prices reflect ultimate cost to customer.

Average electricity retail prices by State 2001/2002

16.0 14.0 12.0 10.0 /kWh 8.0 6.0 4.0 2.0 0.0
Total Average Residential Non-residential NT 14.1 15.4 13.6 SA 12.8 15.1 11.0 VIC 12.0 14.2 10.5 WA 11.2 14.3 9.6 ACT 10.8 10.1 11.4 QLD 9.4 11.2 8.2 NSW 9.1 10.8 8.2 TAS 5.5 11.3 4.3

2 Electricity Association of Australia (ESAA) website http://www.esaa.com.au/store/page.pl?id=1281 Industry Data

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Figure 6 Domestic Electricity Prices 2001/20023


Note: Annual consumption of 3500 kWh is representative of national average consumption. Customers in cold climatic regions may have higher consumption.

Standard Domestic Tariff (with annual consumption of 3,500 kWh)


17.91 17.66 17.66 17.66 17.42 17.32 17.14 16.61 16.9

15.62

18 16

15.93

13.95

13.91

13.58

13.25 Canberra

13.5

/kWh (incl. GST)

14 12 10 8 6 4 2
Melbourne City Melbourne-SE suburbs Central NSW Northern NSW Melbourne-Nth suburbs Northern Territory Eastern Victoria South Australia Western Australia Western Victoria

Southern NSW

Tasmania

Queensland

West Sydney-Illawarra

Far-west NSW

3 Electricity Association of Australia (ESAA) website http://www.esaa.com.au/store/page.pl?id=1281 Industry Data

Sydney-Newcastle

12.51

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Figure 7 Business electricity prices 2000/20014

Business Electricity Prices by distribution area - high voltage demand (with annual peak demand of 2,500 kW at 60% load factor)
9.97 8.89

8.62

10 9 8 /kWh (excl. GST) 7 6 5 4 3 2 1 0

9.61

8.29

8.08

8.06

8.03

7.89

7.87

7.69

7.47

7.33

7.4

7.13

6.51

6.41 Tasmania

Northern Territory

Far west NSW

Western Victoria

Melbourne-City

West Sydney-Illawarra

Southern NSW

Eastern Victoria

South Australia

Northern NSW

Central NSW

Melbourne-SE suburbs

4 Electricity Association of Australia (ESAA) website http://www.esaa.com.au/store/page.pl?id=1281 Industry Data

Melbourne-Nth suburbs

Regional Queensland

Brisbane-Gold Coast

Sydney-Newcastle

Western Australia

Canberra

6.25

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5.2 Minimum Power Factor Specifications


The National Electricity Code has specific provisions regarding power factors, placing the onus on market customers to manage their power factor. In particular, Schedule 5.3 Conditions for Connection of Customers sets out obligations of all classes of Customer who connect to either a transmission network or a distribution network. It represents typical requirements and particular provisions may be waived at the discretion of the Network Service Provider under the provisions of a connection agreement where such waiver would have no potential to adversely and materially affect other Code Participants.5 S5.3.5 Power Factor Requirements5 states: Target power factors for Customers and for distribution networks connected to another transmission network or distribution network are shown in table S5.3.1:

Table 3 National Electricity Code Permissible Power Factor Ranges (Table S5.3.1)5 Nominal Supply Voltage
Greater than 400 kV 250 kV 400 kV 50 kV 250 kV Less than 50 kV

Permissible Power Factor Range


0.98 lagging to unity 0.96 lagging to unity 0.95 lagging to unity 0.90 lagging to 0.90 leading

A Network Service Provider may permit a lower lagging or leading power factor where this will not detrimentally affect system security, or require a higher lagging or leading power factor to achieve required power transfers. If the power factor falls outside the relevant range in table S5.3.1 over any critical loading period nominated by the Network Service Provider, the Customer must, where required by the Network Service Provider in order to economically achieve required power transfer levels, take action to ensure that the power factor falls within range as soon as reasonably practicable. Installing additional reactive plant or reaching a commercial agreement with the Network Service Provider to install, operate and maintain equivalent reactive plant as part of the connection assets may achieve this. A Code Participant who installs shunt capacitors to comply with power factor requirements must comply with the Network Service Provider's reasonable requirements to ensure that the design does not severely attenuate audio frequency signals used for load control or operations. 5 (see Ripple Control section) The following is a listing of distribution Network Service Providers (NSPs) (transmission not included) and their required minimum power factors as specified in their respective service and installation rules.

5 National Electricity Code Version 1.0 Amendment 7.0 1998-2002 National Electricity Code Administrator Limited, ACN 073 942 775

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Table 4 Distribution Network Service Providers and their Power Factor Requirements Distribution Network Service Provider
AGL Gas Company (ACT) Limited and ACTEW Distribution Limited trading as ActewAGL Distribution EnergyAustralia Integral Energy Australia Australian Inland Energy and Water Country Energy Power and Water Authority (PAWA)

State
Australian Capital Territory

Installation
All installations

Power Factor Requirements


Min 0.9 lagging6

New South Wales New South Wales New South Wales New South Wales Northern Territory

All installations All installations All installations All installations All installations

Min 0.9 lagging7 Min 0.9 lagging7 Min 0.9 lagging7 Min 0.9 lagging7 Min 0.85 lagging8 Min 0.8 lagging Min 0.8 lagging

ENERGEX Limited Ergon Energy Corporation Limited Utilities Management Pty Ltd (ETSA Utilities) Aurora Energy Pty Ltd

Queensland Queensland South Australia

All installations All installations

See Table 6 South Australian Power Factor Requirements (ETSA) pg 15 All installations Min 0.75 lagging to 0.75 leading9

Tasmania

AGL Electricity Limited CitiPower Pty Powercor Australia Ltd TXU Electricity Limited United Energy Limited Western Power Corporation

Victoria Victoria Victoria Victoria Victoria Western Australia

See Table 5 Victorian Power Factor Requirements (all Network Service Providers) pg 15

All installations

Min 0.8 lagging to 0.8 leading10

6 Clause 4.6.1 ActewAGL Service & Installation Rules 7 Clause 1.9.10 New South Wales Service and Installation Rules 8 Power and Water Authority Service and Installation Rules 9 Section 5 Your basic responsibilities Aurora Energy Tariff Agreement 10 Clause 2.4.1 Power Factor Requirements Western Power Access to Electricity Distribution Networks, Distribution Technical Code and Planning Criteria July 1997

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AUSTRALIAN BUILDING CODES BOARD POWER FACTOR CORRECTION EVALUATION REPORT

Table 5 Victorian Power Factor Requirements (all Network Service Providers)11 Supply Voltage (kV) Power Factor Range for Customer Max Demand and Voltage Up to 100 kVA
Min. Lagging Less than 6.6 6.6, 11, 22 66 0.75 0.8 0.85 Min. Leading 0.8 0.8 0.85

100 kVA to 2 MVA


Min. Lagging 0.8 0.85 0.9 Min. Leading 0.8 0.85 0.9

Over 2 MVA
Min. Lagging 0.85 0.9 0.95 Min. Leading 0.85 0.9 0.98

Table 6 South Australian Power Factor Requirements (ETSA)12 Supply Voltage (kV) Power Factor Range for Customer Max Demand and Voltage Up to 100 kVA
Min. Lagging Less than 6.6 6.6 to < 66 Greater than 66 0.80 0.80 Min. Leading 0.80 0.80

100 kVA to 2 MVA


Min. Lagging 0.85 0.85 Min. Leading 0.80 0.85

Over 2 MVA
Min. Lagging 0.90 0.90 Min. Leading 0.85 0.90

As specified under Section S5.3.5 of the National Electricity Code

11 Table 2 Power Factor Limits Electricity Distribution Code Jan 2002 (Victoria) 12 p.14 Schedule ETSA Utilities Distribution Code 14 September 2000

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6 Expected and Recommended Power Factors and Maximum Loads


6.1 Recommended Power Factor
As a minimum the power factor of an installation shall be in accordance with the Service Provider requirements. Where the power factor is less than this, the end-user is obligated to install power factor correction regardless. To realise cost savings within a system, consideration should be made for the power factor of an installation to be corrected as close to unity as possible. This needs to be considered in conjunction with the following major points: length of the payback period (neglecting environmental benefits). the size of the installation the electricity tariff structure the customer is on. When the size of the installation is being calculated, there will be a critical point where correcting the power factor any further will only serve to significantly increase the length of the payback period. For the vast majority of electricity Network Service Providers, the minimum power factor specified is 0.9. Correcting beyond this requirement is the payback benefit to the customer.

6.2 Where to install PFC equipment


There are several different ways in which PFC equipment can be installed. PFC can be applied to separate pieces of equipment that is switched in and out as the pieces of equipment are switched on and off. The alternative to this is to bulk correct an installation by attaching the equipment to the main switchboard. There however are issues that need to be considered. If we were to take an example of a typical commercial building, the main switchboard is split into two separate sections; a house services section and a tenant section. The house section is usually on a separate bus section and is separately metered at the main switchboard and paid for by the building owner, whereas the tenant section is un-metered at the main switchboard with meters on each floor to bill each individual tenant. The house section normally houses the circuit breakers for the central air conditioning plant, lifts, house lighting and power. As will be highlighted in Section 7, motors account for a decrease in power quality and thus a reduction in power factor. In this particular instance it would be a valid exercise to consider the benefits of power factor on this section of the installation. In most instances power factor correction is installed providing immediate cost savings to the base building owner. As the tenant power is on a separate bus, they also have the opportunity to consider power factor correction. In most instances the tenant supply usually consists of general lighting and power with some supplementary air conditioning. The power factor for these installations is generally greater than 0.90 and as such there is no significant benefit in installation PFC units. In addition, these tenants are usually metered at a kWh rate that does not consider the power factor of the installation for billing purposes. In new installations, space and capacity provision for PFC equipment should be made in the main switchboard for required current transformers and circuit breakers and in the main

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switchroom for the cabinets housing the equipmentregardless of whether it is to be installed initially, to allow for future installation. By connecting PFC equipment to the main switchboard, all services are generally covered and corrected. This is the easiest way to ensure maximum correction, however, depending on the size of the installation it may be more beneficial and cost-effective to apply PFC to a single piece of plant. The following provides estimates as to the expected power factors and maximum loads (VA/sqm) for the various building forms as provided in the document All Building Forms (3.09.01). Whilst these estimates may provide an indication, the expected power factors and maximum loads depend on many factors, unique to every building including: The outside environment and its effects on the building structure Presence/absence of air-conditioning and type of system used Effects of equipment loads within the premises Lighting scheme In the ensuing tables the following headings are used: Class Building Description Expected PF VA/sqm NLA Maximum total load Savings ($) per Month the class of building as defined in the Building Code of Australia. building use any specifics relevant to the building demand rating and power factor the expected power factor for a non-corrected installation a range of the expected VA per sqm that can be expected Net Lettable Area the maximum total load that can be expected for such a building = Max VA/sqm x Floor Area (NLA) The savings that can be expected per month based on achieving a power factor of 0.95 improved from the expected power factor. The savings per month are based on a typical demand charge tariff value of $6.60/kVA/month.

17

ABCB Representative building forms

Form A: Classes 2 3 5
Building Quantities

R5
total FECA total NLA floors 10,000 m2 8,500 m2 10 1:1 850 31.6 31.6 3.6

C2 F4 F2 W6 G1

aspect ratio NLA/floor length depth floor-floor

m2 m m m

Construction ID Fabric elem. Type rc R5 roof slab w. metal deck C2 ceilings demountable tiles W6 walls precast concrete glazing al frame, single glass, venetians G1 (50% all faces) F4 upper floors rc slab w ceiling suspended rc slab F2 lowest floor (over basement carpark)

Mid-high rise towers, covering buildings of 5-100 storeys with 500-3,000 m2 per storey (total area 2,500300,000 m2). Typically freestanding and seen most commonly as Class 5 in business districts (CBD or outlying centres). Classes 2 and 3 may occur in isolation in residential areas or in resorts. Parking is likely to be under the building in basements.

Class 2

Building Apartments

Description Aircon, electric hot water Aircon, gas hot water No aircon, gas hot water Air conditioned No air conditioning Air conditioning cooling only Reverse cycle Electrical reheat

3 5

Hotel Office Tower

Expected PF 0.90 0.85 0.90 0.85 0.90 0.80 0.80 0.80

VA (sqm) 50-60 40-50 20-30 60-100 40-60 70-100 60-90 80-130

Maximum Total Load (kVA) 510 340 255 850 510 850 765 1105

Savings ($) per month $471 $555 $236 $1,388 $471 $1,891 $1,702 $2,458

ABCB Representative building forms

Form B: Classes 2 3 5 6 9
Building Quantities Construction ID Fabric elem. Type metal deck R2 roof C2 ceilings demountable tiles W6 walls precast concrete glazing al frame, single glass, venetians G1 (50% N&S faces) (20% E&W faces) F4 upper floors rc slab w ceiling suspended rc slab F2 lowest floor (over carpark)

R2

total FECA total NLA floors aspect ratio NLA/floor length depth floor-floor

2000 m2 1700 m2 3 2:1 566.7 36.5 18.3 3.6

C2 W6 F4 F2 G1

m2 m m m

Freestanding or abutting low rise blocks (2-4 storeys) with 500-20,000 m2 per storey (total area 1,000100,000m2). In built-up areas, the buildings will mostly be aligned to the street layout and may have blank faces adjoining neighbouring buildings. May occur as freestanding buildings in regional towns, outlying centres of major cities, office park precincts or campus developments. Parking may be under the building or in adjacent surface carparks.

Class 2

Building Apartments

Description Aircon, electric hot water Aircon, gas hot water No aircon, gas hot water Air conditioned No air conditioning Air conditioning - cooling only Reverse cycle Electrical reheat Not air conditioned public areas Air conditioned public areas Air conditioned

3 5

Hotel Office Tower

Expected PF 0.90 0.85 0.90 0.85 0.90 0.80 0.80 0.80 0.85 0.80 0.80

VA (sqm) 50-60 30-40 20-30 60-100 40-60 70-100 60-90 80-130 60-140 80-160 110-150

Maximum Total Load (kVA) 102 68 51 170 102 170 153 221 238 272 255

Savings ($) per month $94 $111 $47 $278 $94 $378 $340 $492 $389 $605 $567

Retail Centre (air-conditioned shops) Health Care/ Educational

ABCB Representative building forms

Form C: Classes 6 7 8 9
Building Quantities Construction ID Fabric elem. Type R2 roofmetal deck demountable tiles C2 ceiling W6 walls precast concrete G1 m2 m m m

R2

total FECA total NLA floors aspect ratio NLA/floor length depth floor-floor

1000 m2 950 m2 1 1 950.0 31.6 31.6 6

F1

al glazing frame, single glass, venetians (80% N, E&W faces) (0% S face) rc floor slab on ground

F1

W6

G1

Freestanding, low rise blocks (1-2 storeys, totalling 500-50,000m2) with expanded storey heights for special purposes (including retail, storage, institutional and recreational uses). Likely to occur on greenfield sites or as part of campus developments (schools, universities, hospitals, industrial precincts and technology parks) but may be found in city, town and suburban centres. Retail examples may range from freestanding single sales showrooms to fully enclosed multi-outlet developments. Parking is likely to be surface or structured facilities adjoining the buildings.

Class 6 7 8 9

Building Retail sales outlets Controlled environment Storage Factories, workshops, auditoria, gymnasia

Description Not air conditioned Air conditioned Air conditioned Unventilated Ventilated Ventilated Air conditioned

Expected PF 0.85 0.80 0.85 0.95 0.95 0.95 0.80

VA (sqm) 40-100 60-140 40 - 80 5-15 10-20 50-70 80-120

Maximum Total Load (kVA) 95 133 76 14 19 67 114

Savings ($) per month $155 $296 $124 $0 $0 $0 $254

ABCB Representative building forms

Form D: Classes 3 5 6 8 9
Building Quantities Construction ID Fabric elem. Type metal deck R2 roof C2 ceiling..demountable tiles W1 walls single leaf conc block glazing al frame, single glass, G1 venetians (60% N&S faces) (0% E&W faces) F1 rc floor slab on ground

R2

total FECA total NLA floors aspect ratio NLA/floor length depth floor-floor

500 m2 475 m2 1 5 475.0 50.0 10.0 3.3

F1

W1

G1

m2 m m m

Freestanding or abutting, low rise buildings (1-2 storeys), of commercial construction (total floor areas up to 1,000 m2). Occur in most cities and towns as drive-up offices and shops with parking immediately adjoining the buildings. May also occur in campus developments and industrial precincts.

Class 3 5

Building Motel Offices

Description

6 8 9

Shops Small laboratories Workshops, hospital ward block

No air conditioning Air conditioning cooling only Reverse cycle Electrical reheat Not air conditioned Air conditioned Levels 2, 3 Levels 5, 6 Diagnostic

Expected PF 0.85 0.85 0.80 0.80 0.80 0.85 0.80 0.90 0.85 0.85 0.85

VA (sqm) 40-100 40-60 70-100 60-90 80-130 40-100 60-140 40 - 60 110 150 200

Maximum Total Load (kVA) 48 29 48 43 62 48 67 29 52 71 95

Savings ($) per month $78 $47 $106 $95 $137 $78 $148 $26 $85 $116 $155

ABCB Representative building forms

Form E: Classes 2 3 5
Building Quantities total FECA total NLA floors aspect ratio NLA/floor length depth floor-floor 200 m2 190 m2 1 2 190.0 20.0 10.0 3.3 Construction ID Fabric elem. Type concrete tiles R1 roof C1 ceiling..sheet ceiling W4 walls brick veneer glazing al frame, single glass, G1 venetians (50% N&S faces) (10% E&W faces) F1 rc floor slab on ground

R1

W4 F1

G1

m2 m m m

Freestanding or abutting, low rise (1-2 storeys), residential or commercial buildings of domestic construction, with in-built HVAC provisions. Individual blocks may be as small as 50 m2 but, in clusters or adjoining blocks, form facilities totalling several thousand square metres. Seen in most cities and towns as motels and residential duplexes. Parking will typically immediately adjoin the buildings.

Class 2 3 5

Building Home units (duplex) Hotel or motel villas Offices

Description

Air conditioned No air conditioning Air conditioning cooling only Reverse cycle Electrical reheat

Expected PF 0.90 0.85 0.85 0.80 0.80 0.80

VA (sqm) 40-80 60-100 40-60 70-100 60-90 80-130

Maximum Total Load (kVA) 15 19 11 19 17 25

Savings ($) per month $14 $31 $19 $42 $38 $55

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7 Typical Efficiencies of Electric Motors in the Building Industry


This section summarises the typical efficiencies of electric motors used in the building industry and the impact of using higher efficiency motors. In Australia, more than 1.7 million three-phase electric motors run in industrial and commercial facilities, accounting for around 28 per cent of the country's electricity use. Or about 60% of electricity supplied to industry. Practically every organisation runs at least one motorif not hundreds or thousandsto drive pumps, fans, air compressors, conveyors, refrigeration equipment and other processes requiring motive force. The energy consumed costs Australian industry close to $3 billion a year and produces 37 million tonnes of carbon dioxide through burning fossil fuels. Significant cost savings can be realised by utilising higher efficiency motors, especially since running costs can be up to 100 times the purchase price of a motor over its service life. 13 Motors running continuously at high loads for long periods such as exhaust fans will tend to yield the greatest savings.

7.1 Typical efficiencies


Two large variables that determine the efficiency of the motor relate to both construction and operation. Motors of high quality construction have: Increased copper in the winding (up to 60%) to reduce resistance losses and operating temperatures due to the larger thermal mass Higher quality steels with an increased number of thinner laminations reduces core losses from the stator and the rotor (in an induction motor) A narrowed air gap between the rotor and stator to increase the intensity of the magnetic flux so that the same torque is available at reduced power input. Another factor that can vary over the life of the motor is operational; motor efficiency is optimised if it has been correctly sized for the job. An underloaded motor not only runs at lower efficiency but also at a lower power factor. A common way to adjust the speed of a motor is through the use of Variable Speed Drives (VSDs) or simpler two or three speed controls. VSDs are electronic systems used to control motor speed by changing the frequency and voltage supplied to the motor and can result in substantial energy savings, especially for varying loads. Small reductions in speed also can yield substantial energy savings. For example, a 20% reduction in fan speed can reduce energy consumption by nearly 50%14. A disadvantage of VSDs however is that they are essentially large switching power supplies and hence introduce harmonics onto the supply system worsening the power factor. Power factor correction with detuned reactors however can be incorporated into these units resulting in better power quality, lower costs and reduced emissions. Controls to switch off idling motors can also save energy.

13 http://www.isr.gov.au/motors/ 14 http://www.eren.doe.gov/femp/procurement/motor_tips.html

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Since 1 October 2001, three phase electric motors from 0.73kW to <185kW manufactured in or imported into Australia must comply with Minimum Energy Performance (MEPS) requirements, which are set out in AS/NZS 1359.5-2000. MEPS does not apply to submersible motors, integral motor-gear systems, variable or multi-speed speed motors or those rated only for short duty cycles (IEC60034-2 duty rating S2). The Minimum Energy Performance Standards (MEPS) requirements are set out as minimum efficiency levels. The following outlines the relevant sections of the Standard AS1359: Rotating electrical machines - General Requirements Part 101: Rating and Performance AS1359: Rotating electrical machines - General Requirements Part 102.1: Methods for determining losses and efficiency General AS/NZS1359: Rotating electrical machines - General Requirements Part 102.3: Methods for determining losses and efficiency Three phase cage induction motors AS/NZS1359: Rotating electrical machines - General Requirements Part 5: Three phase cage induction motors - High efficiency and minimum energy performance standards (MEPS) requirements Part 101 of AS/NZS1359 sets out methods for determining the rated output of the electric motor, thermal performance and other related performance tests (pull up torque, various short circuit tests etc.). This standard is based on and is equivalent to IEC60034.1. Part 102.1 (also known as Test Method B) of the standard sets out methods for determining the efficiency of an electric motor, primarily using the summation of losses for AC cage induction motors (it also covers other motor types and methods of determining efficiency). This standard is based on and is equivalent to IEC60034.2 including up to amendment 2 (1996). Note that this standard assumes that additional losses (also called stray losses) are fixed at 0.5% for all motor types and sizes. Part 102.3 (also known as Test Method A) of the standard sets out methods for determining the efficiency of a three phase electric motor using the summation of losses method, and includes the direct measurement of additional load losses (also called stray losses) by use of accurate torque measurements over a wide range of outputs. This standard is based on and is equivalent to US test procedures ANSI/IEEE 112-1984 (Method B) and NEMA MG1-1987. It is also equivalent to the forthcoming edition of the revised IEC motor test procedure, which should be published by 2002/2003. Part 5 of the standard sets out the requirements for MEPS for three phase electric motors in Australia. Three phase products from 0.73kW to <185kW have to be registered for MEPS.15 As part of AS1359.102 minimum efficiency levels are set for 2, 4, 6 and 8 pole machines, according to 2 different testing methods, Test Method A (AS1359.102.1) and Test Method B (AS/NZS1359.102.3). These tables for Test Method A (AS1359.102.1) and Test Method B (AS/NZS1359.102.3) provide a very good indication to the efficiency levels of typical motors and also the efficiency improvements as motor size increases.

15 http://www.energyrating.gov.au/manufacturers/motor1.html

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Table 7 MEPS Minimum Efficiency Levels for Three Phase Electric Motors - Test Method A Rated output kW
0.73 0.75 1.1 1.5 2.2 3 4 5.5 7.5 11 15 18.5 22 30 37 45 55 75 90 110 132 150 <185

Minimum efficiency % 2 pole


72.3 72.3 74.6 76.9 79.5 81.2 82.8 84.4 85.8 87.2 88.3 89.0 89.5 90.5 91.1 91.7 92.2 92.9 93.4 93.8 94.2 94.5 94.5

4 pole
72.7 72.7 74.6 76.9 79.5 81.2 82.8 84.4 85.8 87.2 88.3 89.0 89.5 90.5 91.1 91.7 92.2 92.9 93.2 93.8 94.1 94.5 94.5

6 pole
70.7 70.7 73.6 75.7 78.1 79.9 81.6 83.3 84.7 86.4 87.7 88.6 89.1 90.2 90.8 91.5 92.0 92.8 93.2 93.7 94.1 94.4 94.4

8 pole
66.7 66.7 69.9 73.0 76.1 78.2 80.1 82.0 83.7 85.6 87.1 88.0 88.7 89.9 90.6 91.2 91.8 92.7 93.0 93.5 93.8 94.1 94.1

NOTES: 1. For intermediate values of rated output, the efficiency shall be determined by linear interpolation. 2. Tolerances specified in Table 1.1 are applicable to the above values only in the case of a verification test.

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Table 8 MEPS Minimum Efficiency Levels for Three Phase Electric Motors - Test Method B Rated output kW
0.73 0.75 1.1 1.5 2.2 3 4 5.5 7.5 11 15 18.5 22 30 37 45 55 75 90 110 132 150 <185

Minimum efficiency % 2 pole


74 74.0 76.2 78.5 81.0 82.6 84.2 85.7 87.0 88.4 89.4 90.0 90.5 91.4 92.0 92.5 93.0 93.6 94.1 94.4 94.8 95.0 95.0

4 pole
74.4 74.4 76.2 78.5 81.0 82.6 84.2 85.7 87.0 88.4 89.4 90.0 90.5 91.4 92.0 92.5 93.0 93.6 93.9 94.4 94.7 95.0 95.0

6 pole
72.4 72.4 75.2 77.3 79.6 81.4 83.0 84.6 86.0 87.6 88.8 89.6 90.1 91.1 91.7 92.3 92.8 93.5 93.9 94.3 94.7 94.9 94.9

8 pole
68.4 68.4 71.5 74.6 77.6 79.7 81.5 83.3 85.0 86.8 88.2 89.0 89.7 90.8 91.5 92.0 92.6 93.4 93.7 94.1 94.4 94.7 94.7

NOTES: 1. For intermediate values of rated output, the efficiency shall be determined by linear interpolation. 2. Tolerances specified in Table 1.1 are applicable to the above values only in the case of a verification test.

The Part 5 standard also sets out minimum efficiency levels for claims of "high efficiency" for three phase electric motors. These are set out in the tables below for Test Method A (AS1359.102.1) and Test Method B (AS/NZS1359.102.3):

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Table 9 MEPS Minimum High Efficiency Levels for Three Phase Electric Motors - Test Method A Rated output kW
0.73 0.75 1.1 1.5 2.2 3 4 5.5 7.5 11 15 18.5 22 30 37 45 55 75 90 110 132 150 <185

Minimum efficiency % 2 pole


78.8 78.8 80.6 82.6 84.0 85.3 86.3 87.2 88.3 89.5 90.3 90.8 91.2 92.0 92.5 92.9 93.2 93.9 94.2 94.5 94.8 95.0 95.0

4 pole
80.5 80.5 82.2 83.5 84.9 86.0 87.0 87.9 88.9 89.9 90.8 91.2 91.6 92.3 92.8 93.1 93.5 94.0 94.4 94.7 94.9 95.2 95.2

6 pole
76.0 76.0 78.3 79.9 81.9 83.5 84.7 86.1 87.3 88.7 89.6 90.3 90.8 91.6 92.2 92.7 93.1 93.7 94.2 94.5 94.8 95.1 95.1

8 pole
71.8 71.8 74.7 76.8 79.4 81.3 82.8 84.5 86.0 87.7 88.9 89.7 90.2 91.2 91.8 92.4 92.9 93.7 94.1 94.5 94.8 95.2 95.2

NOTES: 1. For intermediate values of rated output, the efficiency shall be determined by linear interpolation. 2. Tolerances specified in Table 1.1 are applicable to the above values only in the case of a verification test.

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Table 10 MEPS Minimum High Efficiency Levels for Three Phase Electric Motors - Test Method B Rated output kW
0.73 0.75 1.1 1.5 2.2 3 4 5.5 7.5 11 15 18.5 22 30 37 45 55 75 90 110 132 150 <185

Minimum efficiency % 2 pole


80.5 80.5 82.2 84.1 85.6 86.7 87.6 88.5 89.5 90.6 91.3 91.8 92.2 92.9 93.3 93.7 94.0 94.6 94.8 95.1 95.4 95.5 95.5

4 pole
82.2 82.2 83.8 85.0 86.4 87.4 88.3 89.2 90.1 90.1 91.8 92.2 92.6 93.2 93.6 93.9 94.2 94.7 95.0 95.3 95.5 95.7 95.7

6 pole
77.7 77.7 79.9 81.5 83.4 84.9 86.1 87.4 88.5 89.8 90.7 91.3 91.8 92.5 93.0 93.5 93.9 94.4 94.8 95.1 95.4 95.6 95.6

8 pole
73.5 73.5 76.3 78.4 80.9 82.7 84.2 85.8 87.2 88.8 90.0 90.7 91.2 92.1 92.7 93.2 93.7 94.4 94.7 95.1 95.4 95.7 95.7

NOTES: 1. For intermediate values of rated output, the efficiency shall be determined by linear interpolation. 2. Tolerances specified in Table 1.1 are applicable to the above values only in the case of a verification test.

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7.2 Power factor and motor efficiency


The correlation between the power factor and a motor's efficiency is such that when the power factor begins to fall, the efficiency of the motor falls as well. This results particularly when induction motors are operated at less than full load. The absolute relationship between power factor and efficiency depends on the profile for each individual motor, which depends on the motor construction, the size of the rotor-stator airgap, the windings, rigidity of the shaft, etc. A poor power factor due to an inductive load can be improved via the addition of power factor correction. An induction motor draws current from the supply consisting of both resistive (load current and loss current) and reactive components (leakage reactance and magnetising current). The current due to the leakage reactance is dependant on the total current drawn by the motor but the magnetising current is independent of the load on the motor. The magnetising current is the current that establishes the flux in the iron and is required for the motor to operate but does not actually contribute to the real work output of the motor. The magnetising current and leakage reactance do not contribute to the real power drawn by the motor however do contribute to the power dissipated in the electricity supply and distribution system. The customer can realise a cost benefit by reducing these factors. Higher efficiency motors tend to have higher power factors and as the size of the motor increases, both efficiency and power factor also increase. Over sizing of motors however is a common cause of low power factor and as such one of the most effective means of optimising power factor is by installing correctly sized motors for the job, regardless of efficiency.

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8 Methods of Power Factor Correction


There are several methods of power factor correction, each with their relative advantages and disadvantages. All methods share the benefits of power factor correction: Increased system capacity Reduced losses in energy distribution (heat losses, etc) Improved voltage due to reduced line losses Large capital expenditure may be avoided due to increased capacity Reduced operating costs (if load does not change)

8.1 Static Correction


Capacitors are hard wired in for a particular load eg induction machine. This method saves on costly switching equipment as it is simply switched in and out as the equipment is switched on and off. Care must be taken however when hooking up to motors due to possible damage when the motor is turned off. This can be avoided with the use of 2 sets of contactors.

8.2 Switched Capacitor Banks


Involves attaching a bank of capacitors between the electrical bus and neutral to provide the reactive current required. Banks switch in and out as required to maintain the best power factor possible. This requires expensive switching control gear however can bulk correct a whole building. Detuned reactors need to be included to avoid resonance and to reduce the harmonic content of the supply.

8.3 Synchronous Condensers


Synchronous condensers are synchronous machines with no connected load and can be used for power factor correction of large industrial plants by under or overexciting them to deliver or absorb VARs as required.

8.4 Electronic Lighting Ballasts


The present trend is towards specifying soft start electronic control equipment, which offers close to unity power factor. The use of high efficiency low-loss electronic ballasts in lieu of low loss iron-core ballasts especially when used in a high-rise office building can help considerably in improving the power factor of the tenant load of a building.

8.5 Correctly Sized Motors


As discussed in the previous section over-sizing of motors is a common cause of low power factor. By sizing the motor correctly for the job in the first instance, power factor can be significantly improved when compared to using an over-sized motor.

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9 Indicative Power Factor Correction Installation Costs and Space Requirements


The following section outlines indicative costing for the installation of power factor correction equipment. Costs will depend on the size of the installation ie the capacity of the kVARs required and the supply voltage. A standard capacitor correction stage is 50 kVARs and indicative costing has been provided per 50kVAR bank. These banks are simply coupled together in parallel to provide the required correction capacity. 50kVAR is the maximum step size allowable by the majority of electricity network service providers. Power factor correction systems typically consist of capacitor banks, detuning reactors and the control equipment to monitor the power factor and switch capacitor banks in and out accordingly to optimise the power factor. Also required is a spare space in the main switchboard and an appropriately sized circuit breaker to make the connection to the power factor correction equipment.

Table 11 Indicative Installation Costs for 525 Volt Capacitors Installation Size (kVAR)
200 250 450 550 600

Installation Cost ($)


9 500 11 000 19 000 22 500 24 000

Cost / 50 kVAR ($)


2 375 2 200 2 110 2 045 2 000

The cost of a small installation is around $2500/50 kVAR, reducing towards $2000/50 kVAR as the installation size increases. This cost only reflects the cost of installing the equipment and does not include possible modifications to the main switchboard. An additional allowance for the circuit breaker required to attach the equipment to the main switchboard also needs to be made. For a 600 kVAR unit, a 1250A circuit breaker is required which will cost in the order of $6000. As discussed previously PFC equipment generates heat load that needs to be extracted to ensure the correct operation of the equipment within the recommended temperature limits. Depending on the location of installation, the additional heat load may require the installation of additional cooling capacity.

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9.1 Cost savings using Power Factor Correction


The below table provides an example of the possible cost savings when using power factor correction in a system. The calculation is indicative only, but the formulas used can be utilised for any application to determine the payback period.

Table 12 Power Factor Correction Installation Payback Calculation Quantity


Real Power kW KVA = kW/power factor KVAR = sqrt(kVA2 kW2) Correction kVAR Correction kVAR installed Demand Charge @$6.60/kVA/Month Monthly savings Est. cost of correction equipment Pay-back period (months) $14 850

Present Power Factor of 0.8


1 800 1800/0.8 = 2 250 Sqrt(22502 18002) = 1 350

Target Power Factor of 0.95


1 800 1800/0.95 = 1 895 Sqrt(18952 18002) = 590 1350 590 = 760 750 $12 510 $1 650 $36 000 21.8 months

The value of $6.60/kVA/Month is a typical figure and will change depending on the electricity tariff the customer is on. This will have an effect on the payback period, which will have to be determined on an installation-by-installation basis. Whilst a target power factor as close as possible to unity may be set when calculating the size of the required correction banks, the exact size required may not be a standard bank configuration resulting in less correction kVARs being installed than optimum. Consideration also needs to be made regarding the payback period. Correction to pf = 0.95 may be economically viable with a reasonable payback period, whereas additional correction to pf = 0.98 may only serve to significantly increase the payback period of the installation. The size of the correction unit may also be limited by the space available in the switchboard. The switchboard may not physically have the space available to install a large enough circuit breaker to connect the power factor correction. For example if the board is rated at 1250A then the maximum size of the connected power factor correction equipment is in the order of 650 kVAR which may limit the achievable corrected power factor. PFC equipment generates a certain heat load that requires extraction to ensure operation within the manufacturers temperature limits. To cater for the additional heat load cooling capacity may need to be increased incurring additional costs. A 3 kW cassette type wall mounted packaged unit costs in the order of $7000 is capable of handling the additional heat load of 2 x 650 KVAR PFC units.

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9.2 Indicative Physical Space Requirements


Power factor correction equipment consisting of the capacitors, control equipment, detuning reactors and cabling is all housed in a single cabinet. Typically, even if only 400 kVAR correction is required, it is advantageous to install it in a 650 kVAR sized cabinet to allow expansion in the future. Sizing for a cabinet is in the order of 2000mm (H) x 700mm (D). The length of the cabinet typically ranges from 1200mm for a 300 kVAR unit to 2000mm for a 650 kVAR unit. The cabinets can generally be installed next to each other with no required clearance, however if installed in the main switchroom must comply with the relevant requirements as outlined in AS3000:2000 which dictates a clearance of 600mm between the main switchboard and other installed equipment. This does not include the additional clearances that are required for equipment doors to open. The size of a 3 kW cassette type wall mounted packaged unit for cooling is approximately 1500mm(W) x 500mm(H) x 300mm(D).

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10 Conclusion
This report has introduced the concept of power factor correction and its use in reducing reactive power consumption. This was followed by indicative electricity costs around Australia. The expected power factor and maximum demands for various building forms and classes were addressed along with recommended power factors for these buildings and where the power factor correction equipment should be installed. Typical efficiencies of electric motors were listed for different sizes and the benefits to both industry and society of using higher efficiency motors. Finally a brief summary of power factor correction methods was presented and indicative costs of installation and associated payback periods for the most common type of commercial developments. The installation of power factor correction is a widely recognised way to reduce energy consumption, thereby reducing electricity costs and benefiting the environment. For commercial installations the incentive to install power factor correction is the savings that will be realised on the customers electricity bill. However it is the length of the payback period that for the vast majority will determine a customers willingness to install such equipment and as such will need to be assessed on a case by case basis. For all installations it was identified that a power factor correction system needs to include detuned reactors and harmonic filters to maximise power quality, minimise the possibility of resonance and reap the maximum benefit of power factor correction. For residential customers the incentive is purely altruistic since kVA demand is not taken into account in billing energy to date. This is not overly detrimental since gains for residential installations are somewhat reduced compared to commercial development as power factor is already very close to unity. The power factor should be corrected as close to unity as possible but needs to be evaluated on an installation-by-installation basis. The level to which an individual installation should be corrected depends on a variety of factors such as the size of the required correction and the electricity tariff structure the customer has selected or negotiated. As a minimum however the power factor should be corrected to exceed the minimum requirement as specified by the relevant Network Service Providers which in general is greater than pf = 0.9. Society must appreciate that production of the built environment contributes to the depletion of finite natural resources and therefore must accept the responsibility to assist in optimising the consumption of resources in both the construction and operation of buildings. By making provisions in the Building Code of Australia for power factor correction coupled with the use of efficient motors there is an opportunity to make a significant contribution to the quality and sustainability of the natural and built environment whilst simultaneously realising economic gains.

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Appendix A NEM Retail Market Participants


The following is a list of current market participants in the National Electricity Market (NEM) registered as at 20 June 200216. ACTEW Energy Limited Advance Energy AGL Electricity Auspower Australian Inland Energy Citipower Pty Ltd CS Energy Ltd CSR Limited Delta Electricity ElectraNet SA Energex Limited Energy Brix Australia Corporation Pty Ltd Energy Developments Limited EnergyAustralia Enron Ergon Energy ETSA Utilities Ferrier Hodgson Electricity Pty Ltd Great Southern Energy Hazelwood Power Integral Energy Loy Yang Power Management Ltd Macquarie Generation Millmerran Energy Trader National Grid International NorthPower NRG Flinders Origin Energy Limited Pacific Hydro Ltd Pacific Power Powercor Australia Ltd

16 NEMMCO Registration List 20 June 2002

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Powerlink Queensland RMB Australia Ltd Snowy Hydro Trading Pty Ltd Stanwell Corporation Ltd Tarong Energy Corporation Ltd TransEnergie Australia Pty Ltd TransGrid TXU TXU Torrens Island Power Station (formally Optima Energy) United Energy Ltd Yallourn Energy Pty Ltd Yamasa Seafoods Australia Pty Ltd

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Appendix B - References
In preparing this report various sources were consulted: Project brief with building forms document All Building Forms (3.09.01) Energy retailers and authorities Energy Australia www.energy.com.au Integral Energy www.integral.com.au Country Energy www.countryenergy.com.au Northern Territory Power & Water Authority www.pawa.com.au Electricity Supply Association (ESAA) www.esaa.com.au National Electricity Code Administrator www.neca.com.au TXU Australia www.txu.com.au ETSA Utilities www.etsa.com.au Aurora Energy www.auroraenergy.com.au Western Power www.westernpower.com.au Energex www.energex.com.au Ergon Energy www.ergon.com.au National Electricity Market Management Company (NEMMCO) www.nemmco.com.au

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Appendix C
This appendix presents the tariff boundaries for New South Wales, Queensland, Victoria and Western Australia. ACT, Northern Territory, South Australia and Tasmania have only single distribution network service providers.

Figure 8 NSW Electricity Supply Boundaries

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Figure 9 - ACT Electricity Supply Boundaries (single NSP)

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Queensland has two NSPs, Energex and Ergon Energy. The boundaries for Energex are shown below. The remainder of Queensland is supplied by Ergon Energy.

Figure 10 - Energex Electricity Supply Boundaries

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Western Power is the main supplier in Western Australia apart from mining operations. The map below shows the main regions of supply.

Figure 11 - Western Australia Electricity Supply Boundaries

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Victorian Electricity Distribution Businesses

Swan Hill

km

60

All features displayed on this map are indicative only, supply areas illustrated are approximate - current at September 2001

Echuca Shepparton

Wodonga Wangaratta Benalla

Bendigo Horsham Seymour Ararat Ballarat Hamilton Sunbury Broadmeadows Sunshine Werribee Geelong Portland Warrnambool Greensborough Lilydale Ringwood Ferntree Gully Warragul Moe Sale Traralgon

N
TXU

Bairnsdale

UNITED ENERGY