Installation of reactive power compensation equipment and reduce costs

July 15, 2017
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Installation of reactive power compensation equipment and reduce costs-0

Reactive Power Compensation Equipment: Benefits and Cost Savings

By using reactive power compensation equipment, you can reduce the cost of electricity and system load.

Key Benefits of Installing This Equipment:

  • Reduced amount payable in the electricity bill (reactive power charge constitutes a significant portion of the total amount for consumed electricity).
  • Improved network quality, which extends the service life of production equipment.
  • Reduced system load.

Reactive power is generated by electric motors, daylight lamps, and other consumers. These consumers differ from ordinary light bulbs in that they have inductance, which creates reactive power consumption.

The charge for reactive power consumption constitutes a significant portion of the total amount payable for consumed electricity. How can you recoup these costs?

Compensating for reactive power results in immediate economic benefits and solves the following problems:

  • Overheating of cables or power transmission lines
  • Increased voltage drop in power transmission lines
  • Transformer overload
  • The need to install higher protection level devices

SIA ZTF LĀSMA is a company that has been developing automation solutions in Latvia for 25 years and has implemented many reactive power compensation projects for companies throughout Latvia in the past 10 years.


A manufacturing company that uses electric motors to support its business consumes approximately 155,000 kVArh of reactive power per month, which results in a monthly payment of around EUR 585.00.

Over the course of a year, the company pays approximately EUR 7020.00 for this item.

Over five years, this cost will amount to approximately EUR 35,100.00.

After analyzing the data in this example, it was found that a 600 kVAr compensation device needed to be installed.

The investment required for installing a 600 kVAr device is approximately EUR 8500.00.

The company will recoup this investment in approximately 14.53 months (EUR 8,500.00 / EUR 585.00).

Code: RAM3800300
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Code: RAM280060
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1324.75 EUR (w/o VAT)
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3528.72 EUR (w/o VAT)
Code: RAM9200210415V
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5163.00 EUR (w/o VAT)
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Mārtiņš Kāns
Mārtiņš Kāns
Project Division Manager
+371 2910 0172