Question:
A consumer has an average demand of 400 kW at a p.f. of 0.8 lagging and annual load factor of 50%. The tariff is Rs 50 per kVA of maximum demand per annum plus 5 paise per kWh. If the power factor is improved to 0.95 lagging by installing phase advancing equipment, calculate :
(i) the capacity of the phase advancing equipment
(ii) the annual saving effected
The phase advancing equipment costs Rs 100 per kVAR and the annual interest and depreciation together amount to 10%.