Discover the causes and effects of low power factor in AC electrical systems. Learn how reactive power, inductive and capacitive loads, and waveform distortion impact efficiency, system capacity, and utility charges. Improve power factor to boost energy efficiency, reduce losses, and lower environmental impact.
Power factor is important in alternating current (AC) power systems. It measures how efficiently electrical power is converted into usable work. When the power factor is low, electrical power is not used effectively. This can negatively affect both the system’s capacity and its efficiency. To optimize the performance and sustainability of electrical networks, it is essential to understand the causes of low power factor and its consequences.
Power factor (PF) is the ratio of real power (P) to apparent power (S) in an AC electrical system. It indicates how efficiently electrical power is being converted into useful work. The formula of the power factor is PF=P/S.
The power factor is the cosine of the angle between the current and voltage in an AC circuit. If the voltage and current are in phase, the power factor is 1. PF<1 for inductive loads(lagging power factor), and current lags behind voltage (e.g., motors, transformers). PF<1 for capacitive loads(leading power factor), and Current leads voltage (e.g., capacitor banks).
Causes of Low Power Factor
The two main causes of a low power factor are displacement between voltage and current waveform and distortion in the waveform
Displacement:
Displacement occurs when the voltage and current waves in a circuit are not in phase. This usually happens due to reactive components like inductors or capacitors in the circuit. When the circuit supplies an inductive load, the current lags the voltage. When the circuit supplies a capacitive load, the current leads to the voltage. It is important to understand the causes of low power factor to improve the power system efficiency.
The inductive loads—such as motors, transformers, and inductors draw reactive and active power. Reactive power (Q) does not perform any useful work, but it plays a crucial role in the operation of electrical devices because it generates magnetic fields. The consumption of reactive power causes a phase shift between current and voltage, and as a result, the power factor becomes less than one. The low power factor leads the circuit to draw more current and causes more voltage drop and power loss(I2R), reducing the efficiency of the circuit.

Capacitive loads—such as capacitor banks and cables—draw reactive and active power. Reactive power (Q) does not do useful work, but it maintains voltage stability in electrical systems. Capacitive loads create a phase shift between voltage and current, and current leads to voltage. This causes the power factor to become greater than one, leading to overvoltage issues. A high capacitive power factor reduces the efficiency of the circuit and affects the stability of the power system.
Distortion:
Distortion in electrical systems occurs when nonlinear loads, such as rectifiers, variable frequency drives, and fluorescent lighting, introduce harmonics into the power supply.

These harmonics create a distorted waveform, increasing total apparent power (S) without contributing to useful work. As a result, the power factor decreases because real power (P) remains unchanged while reactive power increases. A low power factor due to distortion leads to higher losses, increased heating in transformers, and reduced system efficiency.
Impact on Efficiency and System Capacity
Increased Energy Losses: A low power factor causes a higher current flow to deliver the same amount of useful power. This increased current flow leads to greater energy losses. As current increases, resistive losses—mainly in the form of heat—occur in cables, transformers, and other distribution system components. Consequently, the overall efficiency of the system decreases.
Reduced System Capacity: Reactive power in the system consumes part of the network’s capacity. This limits the amount of active power that can be transferred. As a result, the overall capacity of the infrastructure for power generation, transmission, and distribution is reduced. To meet the same demand levels, system upgrades or expansions may become necessary.
Voltage Drop: Higher currents associated with a low power factor cause significant voltage drops along transmission and distribution lines. This voltage drop can negatively affect the performance of electrical equipment. To maintain voltage levels within acceptable limits, corrective actions may be required.
Increased Utility Charges: Many utility providers impose higher charges on customers with a low power factor. This is done to offset the additional costs of generating and transmitting more reactive power. Improving the power factor can lead to substantial savings on monthly electricity bills.
Environmental Impact: A low power factor leads to inefficient energy usage, requiring power plants to generate more electricity to compensate for losses. This results in higher fuel consumption, increased greenhouse gas emissions, and greater environmental pollution. By improving the power factor, industries and businesses can reduce their carbon footprint and contribute to energy conservation efforts.
Conclusion:
In conclusion, maintaining a high power factor is essential for the efficiency and reliability of AC electrical systems. A low power factor causes increased energy losses, reduced system capacity, increased voltage drops, and higher utility charges. It also contributes to environmental pollution due to increased energy consumption. Understanding the causes—such as reactive power from inductive and capacitive loads, and waveform distortion—can help identify effective solutions. By improving the power factor, businesses and industries can enhance system performance, reduce operational costs, and support sustainable energy practices.