Power factor corrections are supposed
to reduce electricity consumption of a firm. Others dispute
that and argue it reduces only electricity costs in case
the power utility is offering a tariff where a reactive
power demand charge are part of the monthly electricity
bill. In discussing the nature or phenomena of reactive
power experts use incomprehensive equations or explanations.
The question is: What is reactive power and under which
circumstances may power factor corrections reduce electricity
consumption in a plant, or reduce electricity costs only,
or reduce both electricity costs and electricity consumption.
Read the question carefully to avoid wasting
your time with unnecessary efforts to write a highly theoretical
dissertation about the subject. The answers are simple
for those who have a good grasp of what reactive power
really is.
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