How to reduce capital expenses up to 30% by optimising power quality
rapidly urbanising landscape relies significantly on electricity for homes and businesses. The need for cooling is also expected to increase, leading to more electricity usage in the future. According to the International Renewable Energy Agency, energy demand is projected to grow annually between 1.8% and 2.9%.
When it comes to sustainability, we are encouraged to see the commitment by our government in lowering emissions while ensuring the growth of a low-carbon economy for the country, especially with the introduction of the National Energy Transition Roadmap. In line with these efforts, building sector must also step up, recognising the increasing role of electricity in future energy consumption.
Buildings are evolving to not only consume power, but also produce, store, and share it. Due to the intermittent nature of renewables and the effects of power conversion, managing power quality is important. It requires businesses to adopt a comprehensive approach involving monitoring, preventive measures, and collaboration with experts to minimise downtime, reduce equipment damage,
and ensure a reliable power supply.
What is the big deal with power quality?
Electric power quality is the degree to which the voltage, frequency, and waveform of a power supply system conform to established specifications. Good power quality can be defined as a steady supply voltage within the prescribed range. It is useful to consider power quality as the compatibility between the output of an electric outlet and the plugged-in load.
However, many Malaysian companies often overlook power quality due to its indirect impact on production output analysis. Companies typically analyse downtime or immediate equipment failure after these events occur, leading to the implementation of mitigation measures to justify production losses.
Power quality issues including interruptions, voltage dips, and harmonic pollution have significant repercussions on business operations, leading to unscheduled downtime and costly damages. About 30% to 40% of all unscheduled downtime is attributed to power quality problems, and about 50% of mission-critical power outages result from such issues.
We found that companies spend an average of RM70 billion annually on power quality issues and experience revenue loss of about RM600,000 when a facility is affected.
How can we manage power quality more effectively?
Effective power quality management demands a comprehensive approach encompassing three vital elements: monitoring, taking preventive measures, and collaborating with expert partners and stakeholders.
Monitor: The initial phase focuses on designing and implementing power quality mitigation measures, establishing a record of power quality issues and compiling data for effective energy management.
Taking preventive measures:
Firms study electricity characteristics, implementing preventive measures to prevent issues like voltage sags. This ongoing process involving consistent monitoring, enhancements, and continuous improvement.
Collaboration: Partnering with experts and stakeholders provides valuable insights, optimising power quality solutions. This approach ensures a comprehensive strategy and integration of expert knowledge to address challenges effectively.
By implementing these steps, firms can minimise downtime, reduce equipment damage, and ensure a reliable and high-quality power supply.
Harnessing the potential of power quality management
Investing in power quality solutions not only ensures high-quality power for increased productivity but also provides a quick return on investment. Companies can reduce their capital expenses up to 30% through optimising their electrical system, avoid oversizing, and limiting redundant capacity. Optimising power consumption can further reduce energy losses by up to 30%, lowering total process energy consumption and cutting CO2 emissions.
Maintaining a good power factor can also lower power bills and reduce power losses in transformers and conductors. Companies can reduce utility billing penalties and lower operating expenses up to 10%.
An example of success comes from Schneider Electric’s collaboration with Kuwait’s Ministry of Electricity and
Water. Facing rising demand and network challenges, they utilised advanced power quality meters to monitor capacitor banks remotely. This initiative increased network capacity by 15% to 20% and reduced transformer losses by around 20% to 25%. Consequently, their electricity tariffs are now among the lowest globally.
Energy consumption monitoring to meet sustainability goals
Monitoring energy consumption is vital for achieving sustainability goals and opens avenues for effective power quality monitoring. The same devices used for tracking energy consumption can assess and enhance power quality, streamlining monitoring processes and contributing to the implementation of mitigation measures. Available data facilitates the preparation of reports and proposals, guiding the implementation of robust power quality measures for energy-efficient and sustainable operations.