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Annual charge and pf improvement for 1200 kVA load

Short answer

i) P=900 kW, MD charge 1200×5000, energy 900×3000×5, total Rs 19,500,000. ii) Qc=900(0.8819−0.3287)=497.9 kVAR; new MD 947.37 kVA, total annual charge including corrector cost Rs 18,635,170.

The load on a certain installation may be considered constant at 1,200 kVA, 0.75 lagging power factor for 3,000 hours per annum. The tariff is Rs 5,000 per kVA maximum demand plus Rs 5 per kWh. i) Determine the annual charge of energy. ii) Power Factor improving apparatus is installed to improve the pf to 0.95 lagging. Determine the kVAR require and the annual charge of energy if the power factor improving apparatus costs Rs 8,000 per kVAR, annual interest and depreciation charges are 10% of the capital cost.

Given: S=1200S = 1200 kVA at pf 0.75 lag, 3000 h/year, tariff Rs 5000/kVA of maximum demand per year + Rs 5/kWh; pf corrector cost Rs 8000/kVAR, annual interest and depreciation 10%.

i) Annual charge at pf 0.75

P=1200×0.75=900 kWMD charge=1200×5000=Rs 6 000 000Energy=900×3000=2 700 000 kWhEnergy charge=2 700 000×5=Rs 13 500 000Annual charge=Rs 19 500 000\begin{aligned} P &= 1200 \times 0.75 = 900\ \text{kW} \\ \text{MD charge} &= 1200 \times 5000 = \text{Rs } 6\,000\,000 \\ \text{Energy} &= 900 \times 3000 = 2\,700\,000\ \text{kWh} \\ \text{Energy charge} &= 2\,700\,000 \times 5 = \text{Rs } 13\,500\,000 \\ \text{Annual charge} &= \text{Rs } 19\,500\,000 \end{aligned}

ii) After raising pf to 0.95

kVAR required:

QC=P(tan⁡ϕ1−tan⁡ϕ2)=900(0.8819−0.3287)=497.9 kVAR\begin{aligned} Q_C &= P(\tan\phi_1 - \tan\phi_2) = 900(0.8819 - 0.3287) = 497.9\ \text{kVAR} \end{aligned}

New maximum demand:

S2=9000.95=947.37 kVAS_2 = \frac{900}{0.95} = 947.37\ \text{kVA}

Annual charges:

MD charge=947.37×5000=Rs 4 736 842Energy charge=Rs 13 500 000 (unchanged)Capital cost=497.9×8000=Rs 3 983 278Interest + depreciation=0.10×3 983 278=Rs 398 328Total=4 736 842+13 500 000+398 328=Rs 18 635 170\begin{aligned} \text{MD charge} &= 947.37 \times 5000 = \text{Rs } 4\,736\,842 \\ \text{Energy charge} &= \text{Rs } 13\,500\,000 \ (\text{unchanged}) \\ \text{Capital cost} &= 497.9 \times 8000 = \text{Rs } 3\,983\,278 \\ \text{Interest + depreciation} &= 0.10 \times 3\,983\,278 = \text{Rs } 398\,328 \\ \text{Total} &= 4\,736\,842 + 13\,500\,000 + 398\,328 = \text{Rs } 18\,635\,170 \end{aligned}
Itempf 0.75 (Rs)pf 0.95 (Rs)
MD charge6,000,0004,736,842
Energy charge13,500,00013,500,000
Corrector charges—398,328
Total19,500,00018,635,170

Answer: (i) Rs 19,500,000 per year; (ii) 497.9 kVAR needed, new annual charge Rs 18,635,170, an annual saving of about Rs 864,830.

✓ Answer checked by Claude Opus 5.5 (high effort)

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