What we offer

What is power factor?

More power, less froth

Power factor is a measure of how effectively your equipment at your site uses electricity. In technical terms, it is the ratio of the working power (kW) to the apparent power (kVA) supplied to your site. 

Think of a glass of beer, made up of amber liquid and froth. As you pay for the whole glass of beer, you want more of the amber liquid and less froth to get value for money. Poor power factor is like a beer with too much froth, with the froth representing wasted energy, and money. 

The amber liquid represents working power (kW on your bill). This is the power that performs the actual work and can be harnessed to create heat, light or motion. Think of this as the satisfying liquid in the beer you’ve paid good money to drink.

The froth represents reactive power (measured in kVAr). This power maintains the electromagnetic field that makes some equipment run. Think of it as the froth on the head of your beer – while it’s a good thing to have, it’s not as satisfying as the amber liquid. 

What is power factor?

Power factor- what it means for your business

Networks charge large businesses for the demand they place on the electricity grid (‘apparent power’ in the diagram above). So if you’re being charged a network demand charge, it pays to improve your power factor.

Reduce the amount you pay in network demand charges by improving your power factor and correcting supply inefficiencies. Our team can advise on the best equipment for your business.

Power factor- what it means for your business

How AGL can help

PFC technology can reduce the amount of power your distributor is required to supply you with and reduce your costs. After installing PFC equipment, some customers will see savings on the first bill after commissioning.

Our PFC services include design and manufacture, through to installation, service, and monitoring.

How AGL can help

Features and benefits

  • Savings

    Reduction in network demand charges on your electricity bill.

  • Reliability

    Our PFC equipment is of the highest quality and reliability.

  • Compliance

    Compliance in line with relevant regulatory codes.

  • Expansion

    Power site expansions without the need for new switchboards and cable.

Komatsu Mining

Komatsu Mining

Komatsu Mining


Testing of large motors at Komatsu Mining revealed that the power factor onsite had dropped to below 0.1. AGL supplied and installed 1,125kVAr of Power Factor Correction equipment, improving the power factor to 0.98.

  • $ 43 k per year
    Financial savings ?
  • 762 kVA
    Demand savings ?
  • 118 tCO2e per year
    Environmental impact ?

Did you know?

Depending on your network charges and your on-site energy usage, installation of PFC equipment could see a return within 1 year.

How it works

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