Management of Power Quality Issues from an Economic Point of View

Abstract

In a context with an increased level of competitiveness, companies are more and more interested in aspects concerning sustainable development. The implications of inadequate power quality (PQ) can determine important financial losses and influence companies’ sustainable development through the generated effects. This article aims to facilitate the management of PQ by proposing a method for estimating the economic consequences of a poor PQ, with priority for the disturbances with significant economic effects. To determine the total cost for each type of PQ perturbation that may occur a classification of cost categories was made such as interruptions, process slowdowns, equipment failure, equipment downtime, reduced energy efficiency, lower product quality, lower labor productivity, and other indirect costs. Each PQ disturbance affects the final end-user differently. For calculating the total value for each type of PQ issues, different calculation formulas have been proposed so that each perturbation includes only those components associated with that perturbation. A case study was used to validate the proposed method. Also, the paper includes a technical and economic analysis of the possible compensation solutions for PQ disturbances that may affect the studied company. In conclusion, an understanding of PQ issues’ consequences and an appropriate approach to PQ compensation solutions can be beneficial to any electrical power end-user.