Background: Low power factor is regarded as one of the most dedicated issues in large
scale inductive power networks, because of the lost energy in term of a reactive power. Accordingly,
installing capacitors in the network improves the power factor and hence decreases the reactive
Methods: This paper presents an approach to maximize the saving in terms of financial costs, energy
resources, environmental protection, and also enhance the power system efficiency. Moreover,
the proposed technique tends to avoid the penalties imposed over the electricity bill (in the case
of the power factor drops below the permissible limit), by applying a proposed method that consists
of two stages. The first stage determines the optimal amount of compensating capacitors by
using a suggested analytical method. The second stage employs a statistical approach to assess
the reduction in energy losses resulting from the capacitors placement in each of the network
nodes. Accordingly, the expected beneficiaries from improving the power factor are mainly large
inductive networks such as large scale factories and industrial field. A numerical example is explained
in useful detail to show the effectiveness and simplicity of the proposed approach and
how it works.
Results: The proposed technique tends to minimize the energy losses resulted from the reactive
power compensation, release the penalties imposed on electricity bills due to the low power factor.
The numerical examples show that the saved cost resulted from improving the power factor, and
energy loss reduction is around 10.94 % per month from the total electricity bill.
Conclusion: The proposed technique to install capacitors has significant benefits and effective power
consumption improvement when the cost of the imposed penalty is regarded as high. The tradeoff
in this technique is between the cost of the installed capacitors and the saving gained from the