Economical impacts of power quality in power systems

Facility managers and utility engineers must evaluate the economic impact of power quality variation against the cost of improving performance under different conditions. Power quality enhancement and its economic advantages for facility managers and customers are highlighted. Different load and major power quality problems are classified so that the sensitivity relation between quality of power and investment can be obtained. A procedure is proposed for correlation between economic consideration and power quality parameters. Using this procedure, the cost of performance improvement for different appropriate solutions is compared with the required power quality investment for different cases. Economic analyses employed are based on an efficiency improvement factor. Finally, a correction factor (Ki) is derived where the significance of the given loads in relation to power quality and economic impact can be obtained.