The most economical power factor correction according to tariff structures in Egypt

A method of applying power-factor (PF) correction capacitors is discussed based on net savings maximization according to Egyptian´s Tariff. Test results from examples taken from existing publications are presented. The purpose of this application technique is to utilize existing electrical distribution equipment in the installation of very large values of PF correction capacitors. It is concluded that LC compensators can be installed, thus providing maximum benefits from penalty elimination, system losses reduction, release of system transformer capacity, and minimum switching transients. Paybacks of less than one year can be expected.