How Important is Power factor correction in a Electrical Network

In Power Engineering Power factor is considered as the ration of real power to apparent power flowing through a particular network. Usually denominated in a scale of -1 to +1 in the decimal fractions, power factor is a primary determinant and a major concern for the big power users in any country. There is a reason behind that:

Need of power factor correction: As per practical applications, a low power factor is considered to draw more current into a network. More current draw is directly proportional to more the power loss in the entire network. It also requires thicker wires and better equipments to handle those current, which added up to the overall cost of installation. More current in a network means more utility charges for a similar output. Also the power loss decreases the efficiency level of the network resulting in higher costs of utilisation. For all these reasons there is power factor correction method that is adopted to raise the power factor level and optimally use the current from the power supply network. Power factor correction can be done through installation of additional reactive loads like inductors and capacitors. Requirement to calculate fault levels: Fault level is the minimum current that passes through the entire network before getting grounded during a fault. Electrical networks tend to get charged and often result in mishaps with increased amount of fault current. Hence for safety there is a requirement of precise calculation of fault levels and keep it at bare minimum with installation of appropriate circuit breakers. The circuit breakers and other safety measures also cost high as per the handing amount of fault level current. Hence it is a daunting task for an Electrical Engineer to optimally calculate fault levels in order to protect the network and save costs. With the help of latest software, it is very much easier to calculate fault levels and also get help in implementing power factor correction in an electrical network.