Monday, February 9, 2009

Power Factor Correction Capacitor System & Energy Saver


PRODUCTS

Power Factor Correction System (PFCS) - The main function is to eliminate/correct the power factor surcharge in monthly electricity bills. The power factor can be calculated by using a percentage on monthly bills. The larger your bills the larger your power factor penalty. For example if your power factor is 0.60 while your bill is RM1000, your power factor penalty is 60% from the bill or equal to RM600. By eliminate this; you can save 37.5% from your monthly payable bill.

The saving is depending on the power factor. The low power factor will give more saving because the penalty will be going up. For example if your power factor is 0.81 the power factor penalty is only 6% from the bills. If there is no action taken to correct it, it will go down further. At some stage, the power factor will be more than electricity bills. The power factor will be depending on:
  • Electrical equipment – more inductance equipment used will low the power factor.

  • Electrical equipment lifespan- more age your equipment tends to lower your power factor.

There are 2 types of PFCS:

1. Direct System

Suit for premises use by small power consumer (SPC) that facing the low power factor problem. It can be used from a small percentage of power factors in a small amps usage until the highest percentage of power factor in a high amps usage.

2. Jointly Control System

Suit for Large Power Consumer (LPC) such as factory, shopping complex, large institution, hospital etc that using the capacitor banks. Our product and the existing capacitor bank will mutually cooperate and control the power factor more efficiently. This system can prolong the lifespan of the capacitor bank.

2.1 New Building Installation

Calibration of capacitor rating will be made before current can be supply. Certain rating of main capacitor bank will be install at the sub station. Our product will be install together at a distribution board (Db) or sub distribution board (Sub Db) to jointly control the power factor rating.

Example: Capacitor rating for the whole building = 500 Kvar
Rating capacitor at main capacitor bank = 250 Kvar
Rating capacitor for our product (5 Units) = 250 Kvar .

The allocations of capacitors for our product by using a star connection (each phase) are determined by the inspection in each Db or Sub Db. This is to ensure the capacitors are distributed to the phases required only. Thus there is no wastage of capacitors tend to reduce product cost.

Servicing and Upgrading Process
An upgrading process will be done at our product only. Therefore there is no calibration needed for the whole building. The upgrading and servicing process also very easy to perform since it involve only small rating capacitor. In addition only certain areas need to be shut down through its Db or Sub Db during the upgrading and servicing process.

2.2 Existing Building Installation

For the existing building installation the Standard Technical Inspection Procedure (STIP) are required.
Based on above Illustration, according to STIP analysis, they are 5 step need to be perform:

STEP 1: Power factor calculation analysis
In above illustration, the p.f unit of 0.87 shows there is no power factor surcharge will be imposed since it was above 0.85. But the p.f shown is a general or overall building p.f unit without taking into consideration the resistance or inductance appliances factor in certain building. For example the cafeteria (building 4) will generate their own p.f unit because of the location is far from MSB which lead more resistance and majority of appliances used is inductance-based such as refrigerator, pendaflour lamp and others.

STEP 2: Calculation and selection of required capacitor ratings
This step will depend on a few factors like overall usage (amps), difference between current p.f unit and targeted p.f or physical observation appliances to determine inductance load. For example, if overall usage is high (high bill), the required capacitor rating will be high also and vice versa.

STEP 3: DB Ratings (Ampere & Voltage)
DB rating inspection is important to know a rating load for each phase. This is very important especially in allocation of capacitors. It is to ensure there is no excessive capacitors installed in each phases or probably the capacitors installed to small as compare to the rating load. Furthermore, load measurement for each phase is fluctuating and only certain cases where each phase rating is consistent. In addition, even though the Db rating is same between building 3 & 4, but the actual usage is not necessary similar.

STEP 4: Allocation of Capacitors
The allocation of right capacitor at the right Db and right phase will give an effective solution of reducing the apparent and real power. Therefore a perfect power consumption will be define not only at the MSB but at the Db. Consequent to that, the overall p.f unit will increase as the p.f unit now is jointly controlled between main capacitor board at MSB and our product at each distribution board.

STEP 5: Installation at the selected DB
After all, the selection of the right Db will be made to ensure the required capacitors rating is well allocated. Taken above illustration as an example:

200 KvaR of capacitor rating is required to increase the p.f unit from 0.87 to 0.98.
This 200 KvaR will be divided accordingly depends on:
a) More KvaR capacitor will be allocated at the Db that consists of more inductance load such as cafeteria,
basement & workshop
b) More capacitor will be allocated at the high phase amps rating
c) More capacitor will be allocated at more resistance load location like cafeteria.
d) Less or no capacitor will be installed at the low or small consumption area such as main hall as the shut off time is more than consumption period.
e) Less or no capacitor will be allocated at the phase that have more capacitance load where this will increase the amps contributed by capacitor itself. Example a red phase at the administration office Db consists of the load contributed by down light lamp (capacitance lamp).

2.3 Other Situation (New and Existing)


Above diagram shows jointly control power factor system between main capacitor bank located at MSB with our product at the Main Db and Sub Db. Installation and maintenance will be done at 5 main Db, 4 Db and 7 Sub Db as shown above. However certain Db will be excluded due to minimal or no different between real power and apparent power. For example, main Db area 4 is refer to office. A normal setup of the down light lamp and the usage of the capacitance load appliances light computer and printer not contribute to the low power factor. In some area, the capacitors install will be high due to the 100% inductance loads. For instance, main Db 2 refer to the basement parking area which use pendaflour lamp that maximize the gap between real power and apparent power.

There are certain cases, where the resistance is very high. It is refer to the place located far away from the MSB. Even though the power factor unit shows at the MSB the ideal power factor (above 0.85) it does not reflects an actual measurement of the real power and apparent power at the Db or Sub Db. With Our product, we ensure there is no power loss happens in overall building. Consequently it will increase the power factor in overall, reduce the maintenance work like replacing a bulbs and motors. Furthermore the maintenance, servicing and replacement of capacitors is more easy to perform since it can be done area by area without interfere the MSB (the whole building supply)


DIFFERENCES BETWEEN RAPTORONIX SYSTEM & CAPACITOR BANKS

Generally, our product function is similar to capacitor bank which is to correct the power factor that cause extra surcharge in monthly electricity bills. If the power factor is not been corrected, it will cause the drop of voltage due to the lost of power. The drop of voltage is due to the excessive flow of electrical load that will cause overheating and damage on the inductive load. The differences are:

1. Suitable for both LPC and SPC

Small power consumer (SPC) can be defined as those who are using less electric consumption such as residential user, shop lot, office owner, restaurant, banks, outlets and showroom or any business entrepreneurs that not located in the industrial area which their bills normally below RM5000 per month. Capacitor Banks is normally used only by LPC (Large Power Consumer) such as factory, hotel, airport terminal and others which their bills above RM5000 per month.

2. STAR connection

Star Connection provides very optimum utilization for each phase without interfering others (separate capacitor for each phase). So, there is no wastage or excessive usage of capacitors. Capacitor bank acts as “Delta” connection. The usage of each phase is fluctuating whereby the activation of capacitor bank is same each phase and its lead to wastage/excessive capacitor.
Wastage/excessive capacitors means by putting extra capacitors in certain phase which have zero or small load. Consequently you will be paying extra cost for the product. Meanwhile excessive capacitors means putting high requirement capacitors in a small load lead to extra ampere and high bills.
There are cases in putting small requirement capacitors in a high load lead to the damages of the capacitors. These problems incurred when the load from capacitor bank is bigger then the actual load consume. As a result, we will bear the cost from ampere supply by capacitors.

3. Most effective

Effectively correcting power factor because it’s located at DB (near to the load) compared to capacitor bank that is located at MSB.

4. Easy Maintenance

Our product is installed within safety parameters and the switch is normally tempered to the board and can be reachable. The servicing of our product can be done less than 30 minutes. There is no need to trip all area because only required DB will be shut off. Further more, servicing our product is low risk compared to capacitor bank. To servicing or replace a capacitor bank, Main Switch Board (MSB) must be shut-off and whole company’s operation needs to be shutdown. It directly causes loss to the company due to stopped operation.


ADVANTAGES COMPARED TO CAPACITOR BANK

1. Low cost
The price is cheaper than the capacitor bank and affordable.

2. Stabilizing power
This product will increase the current power factor level that can reduce the gap between apparent power and real power. Thus the current will be more stabilized.

3. Reduce cost of maintenance and servicing
Consumer can reduce overall maintenance and servicing such as cost of replacing inductance electrical appliance like lamp bulb, cable, motor pump etc. Cost of servicing air conditioner, chiller, refrigerator, blower and others can also be reduced.

4. Prolong the life span of electrical appliances and fixed asset
It can reduce the cost of replacement and repurchase. The activation of capacitors in our product is at DB (near to appliances with no resistance) give an optimum impact and more effective to cut the apparent power.

5. Prolong the Main Capacitor Bank
It can reduce cost of servicing and replacement cycle of main Capacitor bank because the power factor rating is jointly controlled with our product. Thus an upgrading/ replacement process only done to our product to maintain the power factor unit with the low cost maintenance.

6. Long Life Span
Our product have long life span up to five years since the capacitors is to be burdened by low amps rating at DB or Sub-DB compared to capacitor banks in MSB. Normally Capacitor banks need to be calibrated every two (2) years but our product can be long last up to five (5) years.

7. Low risk and easy to maintain
Unlike capacitor bank, our product is low risk, fast and easy maintain because of below factors:
a) Smaller size of capacitors, easy to discharge and install
b) During servicing and installation period, there is no need to cut off the your power supply for the whole building, only for the selected DB. In addition, it does not effect your one-day income if need to cut of the supply in one whole day.
c) Upgrading the current system or new addition of our product can give the same impact in a very cost-effective way to control the power factor unit.

8. STAR Connection
The “Star” connection capacitors provide optimum utilization of each phase without interfering others. It means there is no wastage or excessive usage of capacitors.

9. Short Return On Investment (ROI)
Return On Investment (ROI) can be easily defined as how long you will be getting your money back if you investing in an asset. In other words, we will expect a return in terms of saving per month in RM and how long it can match your investment value. In a normal situation, people more interested in shortest ROI period. Our product price normally has the Return On Investment (ROI) between 2 to 6 month. In energy saving industry, an Ideal ROI period is 12 to 16 month. But it will depend on other factors also such as customers buying power that closely related to our current economic situation. Nowadays people will always looking for cheapest alternatives.

WARRANTY & BUY BACK OPTION

All of our manufactured product will be sold with one (1) Year warranty with the extended option. Furthermore services are still to be done as per customer requirements with minimal charges. Meanwhile we also provide the buy-back option to the customers that want to use our product in the short-term period. Our buy back option plan is using the methods stated below:

A ROI (Return on Investment) gets (in month) multiply by Sum of penalty (pf) in (RM) against Product price.

Product Price – (ROI x pf value) = Buyback value

Fair value of the product is base on product condition and depreciation (if any) but not less than 12% of product price.The buy back option is only applicable if the buyer is going to use the product in the short-term period of time.

HOW CAN WE DETERMINE “SAVING”

Saving can be defined as the money that you can save on your monthly cost, in the short or long term. In our side, saving is in term of a reduction of monthly utilities bill as well as maintenance cost which can increase your net profit. In long term, low maintenance cost means it prolong the lifespan of your electrical equipment and machinery that will give you saving in reinvestment of fixed asset.

In a small set up office or premises, 30% from an initial capital cost in normally used of acquiring fixed asset and electrical equipment such as air conditioner and lighting. Besides, a well maintains equipment such as air-conditioner is normally cost RM100 to RM200 in quarterly basis. This amount will be bigger in a medium or large set up offices/premises.

In a high capacity production (LPC) that consumes high electricity usage, maintenance cost sometimes uncontrollable. If the machine is not well maintained, it will shorten a depreciation and lifespan period. Therefore the company will spend more reinvestment cost on acquiring new machinery. As a conclusion, our product system can give saving in term of:

  • Percentage from low power factor value in bills. By elimination of this power factor means you are paying only what you are consume and subsequently saving in bills.

  • Reduce the maintenance cost of machinery and electrical equipment. Since both are absorbing current at optimum level, there is no problem of excessive supply. When your equipment is running at optimum level, the charge of maintenance and parts replacement will subsequently reduce.

  • In addition, besides reducing the maintenance cost, our product system reduces the reinvestment cost on acquiring new machine or repurchasing electrical equipment.

  • Prolong the servicing and replacement cycle of main Capacitor bank because the power factor rating is jointly controlled with our product। It is common known that the servicing or replacement capacitor bank is expensive and this is not included the calibration fee.

MARKETING PLAN

Basically there is no limitation for us in market or product. From shop lots to large-scale factory, most of them facing the power factor problem. Consumer in the foreign country that using electricity as their main power supply facing the same power factor problem.

Our entire products are unique because it can be used for both Large Power Consumer (LPC) and Small Power Consumer (SPC). It means our product is suitable for all type of consumer irrespective of their electricity bills.

We have put the target in exporting our product and selling our technology to another countries as our long term planning. Locally, we have segmented our marketing plan into two (2) categories:

1. RETAIL DIVISION

In Retail division, we are focusing on shop lots, offices, restaurants, showroom, retail shop, outlets, fast food chain restaurant and others that categorized under SPC (Small Power Consumer). We are using a comprehensive approach in selling our product by explaining to them that we have a solution for their power factor problem.

The unique features about our product is it can give a power factor solution from the small power factor value in a small amps usage premises to a large power factor value in a large scale users as a whole, that is can’t be provide by capacitor banks.

Thus, all three phases consumer especially in a new developed area will have a solution in reducing their monthly cost in eliminating the power factor surcharge.

Retail's Testimonials:

1. Anakku (Asia Brand Retail Outlets) – consists of more than 100 retail outlets throughout Malaysia including Sabah & Sarawak.

2. Marrybrown (M) Sdn Bhd – Owned & Franchise Fast food restaurant locally and outside Malaysia.

3. 24 hours Restaurants - Rangkaian Restoran Osman Sdn Bhd, Ayub Bistro & Restaurants Sdn Bhd, Rangkaian Restoran Hamid Corner 24 Jam, Singgah Selalu 24hours Restaurants

4. Chinese Restaurants - Rangkaian Restoran Goh Zha Lang (Taiwan) Sdn Bhd, Restoran Chaw Yuan Seafood , Pearls Restaurant Chain

5. Budget Hotel – Midland Hotel Sdn Bhd

6. Foreign Office – Simpang Rengam Customs Forwarding Pte Ltd

7. Showroom – Nasim Sdn Bhd, Mutiara Jati Sdn Bhd


2. CORPORATE & GOVERNMENT DIVISION

For this division, we are focusing to reduce the monthly maintenance cost for offices, buildings, chain-shop lots, hotels, petrol kiosk, police station, hospital, airport terminal, post office and any other building owned by government and corporate company.

In large scale building like shopping complex, resort & hotels our product can reduce overall maintenance and servicing such as cost of replacing inductance electrical appliance like lamp bulb, cable and motor pump. Cost of servicing air conditioner, chiller, refrigerator, blower and others can also be reduced due to the optimum usage of current. In addition, it can prolong the lifespan of electrical appliances and fixed asset therefore it can reduce the cost of replacement and repurchase.

Lastly, it will help in prolong the servicing and replacement cycle of main Capacitor bank because the power factor rating is jointly controlled with our product.

Corporate's Testimonial:

1. Majlis Bandaraya Johor Bahru – consists of Directorate office, Pejabat Tapak Semaian, Recycle Centre, Offices at Menara Tabung Haji, Dataran Bandaraya & Sultan Ismail Library.

2. Watson’s Personal Care Store (M) Sdn Bhd – consist of more than 300 outlets throughout Malaysia

3. Naza Corporation Sdn Bhd – car showroom & service center

4. SME Industrial Area – SMI’s factory for business Entrepreneur

5. Pertubuhan Peladang Negeri Johor – consists of mini market, cold room and Fresh market.

6. Guardian Pharmacy (M) Sdn Bhd – Owned by GCH Retail (M) Sdn Bhd

7. SME Bank Bhd – One of the corporate bank in Malaysia