An industrial company based in South Wales specialises in the production of precision-engineered automotive components. Established in 1990, the company has grown steadily, expanding its production capacity to meet increasing demand. However, as the factory’s operations scaled, so did its energy consumption, leading to higher electricity bills and concerns over energy efficiency.
In 2023, the company noticed a significant increase in energy costs, which was disproportionate to its production growth. After a thorough power quality audit, the root cause was identified: the factory had a low power factor, averaging around 0.75. A low power factor indicates inefficient use of electricity, resulting in higher demand charges from the utility provider.
Power factor is a measure of how effectively electrical power is being used. It is the ratio of real power (kW) that does the work to apparent power (kVA) that is supplied to the circuit. A low power factor indicates that a large portion of the electricity supplied to the factory is not being used effectively, leading to unnecessary costs.
To address this issue, the company decided to implement Power Factor Correction (PFC) technology. Power Factor Correction equipment helps to improve the power factor by reducing the phase difference between voltage and current. By installing capacitors and automatic power factor controllers, the company aimed to improve its power factor close to 1.0, which is ideal.
The implementation process began with a detailed analysis of the factory’s electrical load profile. The company partnered with a local energy solutions provider to design a customised PFC system that would suit their specific needs.
The installation was carried out over a period of two weeks with minimal disruption to production.

Post-installation, the factory’s power factor improved significantly, rising from 0.75 to 0.98. This improvement had several immediate and long-term benefits:
The implementation of Power Factor Correction at this industrial company in South Wales was a successful initiative that not only reduced operational costs but also enhanced the overall efficiency of the factory.
The investment in PFC technology, which had a payback period of just under two years, has set the foundation for more sustainable and cost-effective operations in the future. This case study highlights the importance of addressing power factor issues and demonstrates the tangible benefits that can be achieved through targeted energy efficiency measures.
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