2023 2nd International Conference on Emerging Trends in Electrical, Control, and Telecommunication Engineering (ETECTE) | 979-8-3503-0565-4/23/$31.

00 ©2023 IEEE | DOI: 10.1109/ETECTE59617.2023.10396685

Dynamic Power Factor Correction in Industrial

Systems: An Automated Capacitor Bank Control
Approach
Muhammad Ayaz Syed Muhammad Hur Rizvi Muhammad Akbar
Faculty of Electrical Engineering Department of Electrical Engineering Faculty of Electrical Engineering
GIKI Habib University GIKI
Topi, Swabi, Pakistan Karachi, Pakistan Topi, Swabi, Pakistan
ayaz.epe@gmail.com hur.rizvi@sse.habib.edu.pk akbar@giki.edu.pk

Abstract—In industrial contexts, optimizing power factor ef-
ficiency is of paramount importance. This work presents a
comprehensive study that focuses on the enhancement of power
factor efficiency in industrial systems through the implemen-
tation of an intelligent capacitor bank control strategy. The
methodology employed utilizes real-world data collected from
an industrial facility to assess power factor performance before
and after the installation of capacitor banks. This approach
encompasses motor modeling, algorithm development, and an
economic feasibility evaluation. The research findings highlight
the significant improvement in power factor, reduction in energy
losses, and overall system performance optimization achieved
through the proposed strategy, which includes the creation of
different capacitor bank stages for achieving the desired KVAR
and ensuring the optimal use of capacitor banks.
Index Terms—Power Factor Correction, Capacitor Bank Con-
trol, Industrial Energy Efficiency, Reactive Power Compensation,
Motor Modeling
I. I NTRODUCTION
In modern industrial systems, efficient utilization of elec-
trical power resources is paramount. The essential job of
any electric power system is to deliver energy consistently
at acceptable frequencies and voltages [1]. One crucial fac-
tor influencing the efficiency of power consumption is the
Power Factor (PF). The power factor represents the ratio of
real power (used for performing useful work) to apparent
power (total power drawn from the supply). A high (PF)
indicates efficient utilization of electrical energy, while a low
(PF) signifies wastage and increased demand on the power
distribution network. Reactive power compensation (RPC)
increases power factor and phase balance, and it can also
minimize harmonics with suitable filter design [2], [3] Poor
power factors in industrial systems lead to increased energy
usage, higher electricity bills, and potential utility penalties.
It strains power generating, transmission, and distribution
systems, reducing efficiency and increasing operational costs.
In order to address these problems, [4] examined the potential
negative consequences and phenomena connected with power
factor adjustment in electrical systems and provided analytical
979-8-3503-0565-4/23/$31.00 ©2023 IEEE
mathematical techniques. Reactive power must be modified
in order to preserve power quality, which includes elements
like voltage and current stability [5]. Excessive energy usage
also has negative environmental consequences. [6] compares
Passive Power Factor Corrector (PPFC) topologies to Active
Power Factor Corrector (APFC) systems. [7] and [8] presented
two forms of reactive power compensation solutions, as well
as harmonic reduction methods for imbalanced loads. The
article [9] evaluates high voltage clusters’ ability to compen-
sate for reactive power in the additional high voltage grid,
analyses the competence of distributed energy resources, and
evaluates the economic viability of mechanically switched
capacitors. Article [10] highlights the importance of power
factor improvement for efficient energy usage and introduces
an ICT-driven device for flexible and remote power factor
correction in diverse load scenarios. In order to solve earlier
shortcomings, [11] presents a method to estimate core losses
in power factor correction circuits. The paper [12] discusses
the design of a power factor compensation system using
probabilistic criteria, aiming to minimize costs by considering
energy, but The fundamental issue in [12] is that it relies on
measurement results statistics to define the objective function,
which may not completely account for real-world conditions
and variability. The study highlights the need for power factor
enhancement in industrial systems to reduce energy losses,
optimize power consumption, and contribute to sustainable
operations. It proposes an automatic capacitor bank control
system to address technical and economic issues. The project
uses MATLAB Simulink to develop and demonstrate an au-
tomated control technique that intelligently switches capacitor
banks based on load demands, ensuring optimal power factors
under various conditions. By achieving this, the study seeks
to achieve the following outcomes:
• Enhanced Energy Efficiency: High power factor reduces
energy losses and enhances energy utilization.
• Cost Savings: Improved power factor leads to lower
electricity bills and reduced penalties.
• Operational Reliability: Automatic control enhances

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 system stability in response to load fluctuations.
• Technical Advancement: Demonstrates the feasibility of
modern control techniques using MATLAB S IMULINK
in industrial applications.
The major contributions of the paper are:
• Collected and examined load data, including compre-
hensive motor data and load profiles, from an industrial
context.
• Implemented a capacitor bank sizing approach to ensure
optimal use and avoid excessive capacitor consumption
during the operation, contributing to enhanced energy
efficiency.
• Developed an innovative control method for automatic
switching of capacitor banks in order to obtain the
required KVAR (reactive power), ensuring efficient power
factor correction.
• Conducted a thorough economic analysis, including cost
estimates, return on investment calculations, and payback
time determination, offering useful insights for practical
implementation in industrial settings.
II. P OWER FACTOR
The power factor (P F ) is a critical parameter that charac-
terizes the efficiency of power utilization in electrical systems.
It is defined as the ratio of real power (used for performing
useful work) to apparent power (total power drawn from the
supply). Mathematically, the power factor (P F ) is expressed
as:
Finally, Equation 7 indicates the current flow through the
capacitor, critical in compensating for reactive power and im-
proving power factor while minimizing reactive losses, thereby
optimizing electrical system efficiency. These equations are
fundamental in understanding and implementing power factor
correction in electrical systems.
A high power factor signals efficient energy use, while a
low power factor points to inefficient distribution with excess
reactive power. Improving the power factor boosts efficiency
and lowers costs.
III. E CONOMIC A SPECTS
Economic aspects play an important role in any project. In
this section, all the parameters related to the project’s cost,
annual electricity charges, annual unit consumption, annual
savings after power factor correction, payback time, and return
on investment will be discussed in detail.
kW
Total electrical load (kVA) = (8)
Power factor
kVA Demand Charge = Total load (kVA) × kVA Charges
(9)
Annual Unit Consumption = kW × Daily use × 365 days
(10)
Annual Charge = Annual Units × kW Charges (11)
Total Annual Cost Before Correction = kVA Demand Charges
+ Annual Unit Charge
(12)

Real Power kW
PF = (1) Total electrical load (kVA) = (13)
Apparent Power Power factor
kVA Demand Charge After Correction = Total load (kVA)
Equation 1 defines the efficiency of power usage, calculated as
× kVA Charges
the ratio of real power to apparent power. Equation 2 quantifies
(14)
this relationship.
Annual Charge After Correction = Annual Units × kW Charges
kW (15)
PF = √ (2)
kV A2 + kW 2 Total Annual Cost After Correction = kVA Demand Charges
To enhance the power factor from 0.7 to 0.9, we compute the + Annual Unit Charge
change in angle (Equation 3), followed by determining the (16)
required reactive power of the capacitor (Equation 4)
∆ϕ = ϕ2 − ϕ1 (3) Annual Saving = Cost Before Correction − Cost After Correction
(17)
Qc = P · (tan(ϕ1 ) − tan(ϕ2 )) (4)
Total Cost
Payback Time = (18)
Xc = 2πf · Vrms (5) Annual Saving
Automatic capacitor control enhances industrial power factor,
Qc increasing efficiency, cost savings, and system stability, while
C= (6)
Xc reducing human intervention and energy costs.
Equation 5 accounts for the capacitor’s effect on reactive IV. M ETHODOLOGY
impedance, and Equation 6 calculates the necessary capacitor
value. The initial power factor of induction motors is calculated
in this study using actual data from a small industry. The
Qc
Ic = √ (7) control block chooses the necessary number of capacitor bank
3 · Vrms · sin(Θ) stages to account for reactive power and improve the power

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 factor if the factor drops below the desired value of 0.85. Thus, for the 5 kVAR capacitor bank, a specific number of
Until the power factor reaches or exceeds the target threshold, levels are required, each having a certain capacitance value,
this iterative procedure is continued.The appropriate selection connected appropriately with the load.
of capacitor banks is essential to address reactive power Calculations for 15 kVAR Capacitor Bank: For 15 kVAR
problems. Errors must be avoided at all costs. Capacitors that capacitor banks, the required capacitance values are deter-
are too small won’t be able to sufficiently change the power mined similarly based on the desired reactive power compen-
factor. The following equations and formulas offer suggestions sation. Hence, the specific number of levels and the associated
for choosing the right capacitor values. capacitance values will be calculated in accordance with the
power factor correction requirements for each motor category.
Size of Capacitor Banks
In order to find the right size of capacitor banks, the first step A. Industrial Data set
is to determine the total load in kW and Power factor before For the analysis, an extensive industrial data set was col-
correction. The apparent power before correction is calculated lected, containing monthly power consumption records and
using the equation: motor operation profiles. This data-set provides valuable in-
kW sights into the energy consumption patterns and load variations
kV Aold = within the industrial facility. The monthly consumption data
Power Factorold
allows us to identify peak demand periods and load fluctu-
With both the initial and target power factors taken into ations that impact the power factor. Voltage Vp−p (Volts) is
account, the analysis will determine the value of capacitors in 400 and all motors are induction-type motors. The daily load
kVAR units. With the use of this technique, electrical systems’ profile of the industry is shown in Fig. 4 and motors details
effective reactive power compensation will be demonstrated. are tabulated in Table I.
Equation (4) is used to calculate to total KVAR required for
reactive power compensation. In equation (4), Θ1 = Angle TABLE I
corresponding to the initial Power Factor, Θ2 = Angle corre- M OTOR S PECIFICATIONS
sponding to the required Power Factor. S No. Power (HP) Power(kW) Speed (RPM)
1 50 37 1480
Value of Capacitance 2 50 37 1480
The corresponding capacitance in farads must then be 3 50 37 1480
ł
4 20 15 1460
calculated after the capacitor’s value in kVAR, as farads are 5 5.4 4 1430
the standard units for capacitors in software programs like 6 5.4 4 1430
MATLAB and SIMULINK. Equation (6) can be used to 7 5.4 4 1430
determine this capacitance (C) where:
Qc
Ic = √ , Xc = 2πf V
3 × 410
,
The values listed above are for full-load situations. However,
because motor loads are varied and time-dependent, using
the entire capacitor bank capacity continually is unnecessary.
As a result, the capacitor bank will be installed in stages to
optimize power factor correction while reducing the number
of active capacitor levels. This organized technique guarantees
that capacitors are strategically engaged based on real-time
load conditions, improving power factor correction efficiency
and adaptability.
Number of Stages
To achieve the required reactive power (Qc ), we will employ
a combination of capacitor banks, with 5 kVAR capacitor
banks for smaller motors and 15 kVAR capacitor banks for
larger motors. The general calculations for determining the
capacitance values of these capacitor banks are as follows:
Calculations for 5 kVAR Capacitor Bank: Each capacitor
bank level should possess identical capacitance, determined by
the following equations:
5 kVAR Ic Fig. 1. Control Strategy
Ic = √ A, C = F
3×V X c

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 B. Induction Motor Modeling in MATLAB Simulink
To simulate real-world conditions, we developed a com-
prehensive model of induction motors using MATLAB
S IMULINK shown in Fig. 2. This model incorporates various
parameters, such as motor specifications, load characteristics,
and operating conditions. By simulating the behavior of in-
duction motors, we can accurately assess their impact on the
overall power factor and reactive power consumption within
the system.
B. Baseline Power Factor and Associated Issues
The baseline power factor obtained from the initial dataset
sheds light on the existing power factor status of the industrial
system. A lower power factor indicated a significant proportion
of reactive power in relation to real power, highlighting inef-
ficient energy utilization. Table III compares reactive power
before and after reactive power compensation. Associated
issues included increased energy losses, elevated electricity
bills due to low power factor penalties, and strain on the power
distribution infrastructure.

C. Simulation Results after Capacitor Bank Addition

Fig. 2. Induction Machine Model
C. Automatic Capacitor Bank Control Algorithm
The methodology uses an autonomous capacitor bank con-
trol algorithm to optimize power factors in real time based
on load conditions, incorporating induction motor data and
industrial datasets. Flowcharts detail load analysis, compen-
sation calculations, and system control for improved power
factor.
V. R ESULTS AND D ISCUSSION
A. Calculation of Initial Power Factor
The first step in our analysis was the calculation of the
power factor using the real data set collected from the in-
dustrial facility before the implementation of capacitor banks.
Simulink Model of all the available motors of Table I was
developed shown in Fig. 3 and the initial power factor is
calculated for different loading conditions tabulated in Table
II.
TABLE II
P OWER FACTOR I MPROVEMENT WITH C APACITOR BANKS
Load Condition PF (Before/After Compensation) Levels of CB
1/4 loaded Before: 0.19 / After: 0.89
1/2 loaded Before: 0.49 / After: 0.93
Fully loaded Before: 0.46 / After: 0.86
We addressed power factor concerns by gradually introduc-
ing capacitor banks and simulating the impact using MAT-
LAB S IMULINK. This confirmed significant power factor
improvement and validated the automatic control algorithm’s
effectiveness. We examined the results at each stage and
emphasized the importance of dynamic power factor correction
for reducing energy usage and potential cost savings in real-
world industrial applications.
The nine-hour simulation illustrates consistent power factor
maintenance above 0.85 despite fluctuations resulting from
changing motor loads (see Fig. 5). This phenomenon, known
as ’Inrush Current,’ briefly reduces the power factor when
heavy machinery is introduced due to an increased phase shift
between voltage and current. Notably, smaller loads (4 kW to
19 kW) exhibit fewer variations compared to larger loads, as
depicted in Fig. 6. While inrush current temporarily affects
power factor, its long-term impact is minimal. Short-term
mitigation can be achieved using filters or current limiters, but
their influence on long-term power factor stability is limited.
D. Economic Analysis
1) Annual Saving and Payback Time: Annual saving and
payback time can be discussed in two domains. First, dis-
cussion of the economic parameters before power factor cor-
rection, and then followed by parameters after power factor
correction. Equation (8)-(18) of Section III will be used to
perform economic analysis.
2) Total Electrical Load: The total electrical load consists
of all the apparent power ratings in kVA and all active powers
in kW. We have a total of seven induction motors, out of which
three motors are rated at 4 kW, three at 37 kW, and one at 15
kW. Therefore,
2
4 Total kW = 3(4 kW) + 3(37 kW) + 15 kW = 138 kW
10
Qc = 138 tan(cos−1 (0.54)) − tan(cos−1 (0.85))

Qc = 130 kVAR
TABLE III
R EACTIVE P OWER I MPROVEMENT WITH PF C OMPENSATION So, the total kVAR required to raise the Power Factor from
Load Condition Before RPC After RPC 0.54 to 0.85 will be 130 kVAR.
1/4 loaded 1.51 × 108 6.41 × 107 130 kVAR
1/2 loaded 2.85 × 108 1.27 × 108 Ic = √ = 183 A
Fully loaded 6.07 × 108 3.55 × 108 3 × 410
Xc = 2π × 50 × 410 = 128805 Ω

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 Fig. 3. Simulink Model

Load Profile
100

90

80

70
Total kW (ON)

60

50

40

30

20

10

0
9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
Time (Hour)

Fig. 4. Load Profile

Fig. 6. Variation when switching loads

So, the value of capacitance will be:

C = 1420 µF

Although the values are for a full load, it’s not required to
use the entire value of the capacitor bank because motor loads
can vary. The minimal levels will be used to generate different
stages for power factor correction.

Fig. 5. Power factor variation as load changes
Number of Stages
Since our required Qc is 130 kVAR, we will use 6 capacitor
banks of 5 kVAR each for the small motors and 4 capacitor
banks of 25 kVAR each for the large motors. The calculations
for these capacitor banks are as follows:

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 Calculations for 5 kVAR Capacitor Bank: VI. C ONCLUSION AND F UTURE W ORK
5 kVAR Ic Using real-world data from an industrial facility, the study
Ic = √ A = 7 A, C = F = 54 µF
3 × 410 X c investigated power factor correction in an industrial setting. It
discovered low power factors and high reactive power levels.
So, it is required to add 6 capacitor bank levels, each with a
To address this, an intelligent control method for smart capac-
capacitance of 54 µF, in delta connection in parallel with the
itor banks that compensates for reactive power was created.
load.
With lower KVA demand charges and consistent annual unit
Calculations for 15 kVAR Capacitor Bank: The four levels
consumption, the method resulted in considerable improve-
of capacitor banks that are to have a rating of 15 kVAR will
ments in energy efficiency and cost savings. After power factor
have the capacitance:
correction, the overall annual cost was substantially reduced.
30 kVAR Ic The financial benefits of the study, with a favorable payback
Ic = √ A = 42 A, C = F = 326 µF
3 × 410 X c time of 4 years and 4 months, highlight the significance of
So, 4 capacitor bank levels, each with a capacitance of 326 power factor correction in industrial settings. Future research
µF, are required. should concentrate on optimizing the smart capacitor bank
3) Given Charges: According to NEPRA (National Electric control algorithm using advanced machine learning or artificial
Power Regulatory Authority), there are fixed charges based on intelligence techniques, conducting long-term field trials, and
which a monthly electricity bill is calculated. These charges integrating renewable energy sources and energy storage sys-
vary for different types of loads, and for industrial loads, the tems for more sustainable power factor correction strategies,
charges are as follows: in order to meet evolving industrial energy needs.
• kVA Charge = 120 Rs per kVA
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