Power Factor Correction | Maximizing Industrial Power Usage

In alternating current circuits, the current absorbed by a load may be represented by two components: the active IR and reactive IQ component. The active IR component represents the useful work being generated, be it mechanical, luminous, thermal, or other forms of work. The reactive IQ component, perpendicular to the voltage, produces the flux (or flow of energy) necessary for the conversion of powers through the electric or magnetic field. Reactive IQ is also an index of the energy exchange between the supply and the element of the electrical installation. Without this component, there could be no net transfer of power, for example, by magnetic coupling intervention in the core of a transformer or in the air gap of a motor.

In any system, some portion of the energy being supplied will be used in the conversion of energy into useful energy, instead of being directly applied to work. The power factor represents the relationship between the useful power and the total power being applied to the system. 

An example would be gas-powered automobiles and miles per gallon ratings. A vehicle with higher miles per gallon rating would have a higher power factor, given more gasoline is used for physical motion versus the simple transfer of gasoline into useful energy. In a car, improvements to the engine would make it more efficient. In electrical engineering, the power factor is often corrected using capacitors.