Jan. 2010, Volume 4, No.1 (Serial No.

26)
Journal of Energy and Power Engineering, ISSN 1934-8975, USA

Economic Implications of Poor Power Quality

Norbert. Edomah, LCGI – Research areas include; Power Quality, Engineering Economics; Engineering Ethics,
Engineering Management – [email protected]. 1
1. Doctoral Student – by Prior Publication – Department of Engineering Management, University of Sunderland, United
Kingdom.

Received June 5, 2009 / Accepted September 9, 2009 / Published January 8, 2010.

Abstract: Poor power quality is really becoming an increasing phenomenon. Studies revealed that most companies – particularly
multinationals – in Nigeria do not pay enough attention to the effects of poor power quality on their plant and equipment, let alone
the economic implications. The result is high production and maintenance cost. Findings also revealed that these companies loose an
average of $50,000 annually owing to equipment damage (such as variable speed drives) caused by poor power quality. This paper
focuses on the need for continuous monitoring and management of poor power quality disturbance parameters and the cost/economic
implications of not addressing Power Quality issues.

Key words: Sag, Swell, Power Monitoring, Power Quality.

1. Introduction
Electrical power quality is a broad field which 2. Power Quality
covers all aspects of power systems engineering, from
Voltage changes can range from small voltage
transmission and distribution, to end user problems. It
fluctuations of short duration to a complete outage for
has become a source of concern for utilities, end users,
an extended period of time. Undervoltage occurs when
civil/construction engineers and manufacturers. For
voltage decreases outside normal rated tolerance. An
these problems to be addressed, electric utilities must
undervoltage is often referred to as sag when the
understand the sensitivity of end-user equipment to
duration is two seconds or less.
the quality of voltage. Consumers must also learn to
Overvoltages occur when voltage increases above
control the quality of their loads.
normal rated tolerance. An overvoltage is referred to a
swell when the disturbance lasts two seconds or less.
Studies show that the best and most efficient
Overvoltages and swells can upset sensitive electronic
solution to power quality problems is to control them
equipment, and cause damage in some cases [2]. Fig.
at their source. This can be done by a careful selection
1 below shows some common power disturbance
of loads, and control and mitigation of single-time
parameters
disturbances and harmonics before connecting loads to
power systems [1[. The following sections will focus
on the impact of poor power quality, the need for
continuous monitoring of poor power quality, and the
economic benefits for monitoring poor power quality

1
2 Research on Economic Impact of Poor Power Quality

[2]
3.1 Unpredictable Events

Both electric utilities and end users agree that more

than 60% of power quality problems are generated by
natural and unpredictable events [4]. Some of these
include faults, lightning surge propagation, resonance,
Ferro-resonance, and Geo-magnetically Induced
Currents (GICs) due to solar flares [5]. These events
are considered to be utility related problems

Fig 1. Power Quality Disturbance Parameters. Source;

Ref [2] 3.2 The Electric Utility

Utility companies strive to maintain uniform

There are three main sources of poor power quality
voltage but disturbances from outside sources, such as
related to electric utilities:
lightning and short circuits, can appear on the sine
wave in the form of surges. 3.2.1 The point of supply generation:
Surges can range from a few volts to several
thousand volts and last from a few microseconds to a Although synchronous machines generate nearly
few milliseconds. While overvoltage and undervoltage perfect sinusoidal voltages (harmonic content less than
can upset or damage sensitive electronic equipment, 3%), there are power quality problems originating at
surges are far more destructive. [2] Fig 2 below shows generating plants which are mainly due to maintenance
the waveforms of voltage surges activity, planning, capacity and expansion constraints,
scheduling, events leading to forced outages, and load
transferring from one substation to another [3].

3.2.2 The transmission system:

Relatively few power quality problems originate

in the transmission system. Typical power quality
problems originating in the transmission system are
galloping (under high-wind conditions resulting in
Fig. 2. Waveforms of voltage surges. Source; Ref [2]
supply interruptions and/or random voltage variations),
lightning (resulting in a spike or transient overvoltage),
insulator flashover, voltage dips (due to faults),
3. Sources of Power Quality Disturbances interruptions (due to planned outages by utility),
Power quality disturbances originate from four major transient overvoltages (generated by capacitor and/or
sources [3]; inductor switching, and lightning), transformer
• Unpredictable events energizing (resulting in inrush currents that are rich in
• The electric utility harmonic components), improper operation of voltage
• The consumer/customer regulation devices (which can lead to long-duration
• The manufacturers voltage variations), slow voltage variations (due to a
 Research on Economic Impact of Poor Power Quality 3

long-term variation of the load caused by the There are two main sources of poor power quality
continuous switching of devices and load), flexible AC related to manufacturing regulations:
transmission system (FACTS) devices [6] and
3.4.1. Standards:
high-voltage DC (HVDC) systems [7], corona [8],
power line carrier signals [9], broadband power line The lack of standards for testing, certification, sale,
(BPL) communications [10], and electromagnetic purchase, installation, and use of electronic equipment
fields (EMF) [11]. and appliances is a major cause of power quality
problems.
3.2.3 The distribution system:
3.4.2. Equipment sensitivity:
Typical power quality problems originating in the
distribution system are voltage dips, spikes, and The proliferation of “sensitive” electronic equipment
interruptions, transient overvoltages, transformer and appliances is one of the main reasons for the increase
energizing, improper operation of voltage regulation of power quality problems. The design characteristics of
devices, slow voltage variations, power line carrier these devices, including computer-based equipment, have
signals, BPL, and EMFs. increased the incompatibility of a wide variety of these
devices with the electrical environment [13].

3.3 The Customer

4. Cost/Economic Implications of Poor
Customer loads generate a considerable portion of Power Quality
power quality problems in today’s power systems.
Some end-user related problems are harmonics Clearly, in a business environment, the equipment in
(generated by non-linear loads such as power use has to be resilient to the normal characteristic
electronic devices and equipment, renewable energy defects of the supply and this is not the case with
sources, FACTS devices, adjustable-speed drives, off-the-shelf equipment. The cost of correction is
uninterruptible power supplies (UPS), fax machines, much lower if corrective action is taken at the design
laser printers, computers, and fluorescent lights), poor stage of the equipment but this requires knowledge of
power factor (due to highly inductive loads such as the nature and probability of defects. It is this
induction motors and air-conditioning units), flicker knowledge that is missing. This is, however, the most
(generated by arc furnaces [12]), transients (mostly cost effective approach.
generated inside a facility due to device switching, Some equipment makers are recognizing the
electrostatic discharge, and arcing), improper problem but the competitive market means that
grounding (causing most reported customer manufacturers will only respond to customers’
problems), frequency variations (when secondary and requirements. Until customers understand the problems
backup power sources, such as diesel engine and and realize that equipment suppliers can provide a
turbine generators, are used), misapplication of solution, they will not specify improved performance.
technology, wiring regulations, and other relevant The exception is the variable speed drive market where
standards. manufacturers are actively promoting products with
enhanced dip ride through.

3.4 Manufacturing Regulations

4.1 Implications of Poor Power Quality
4 Research on Economic Impact of Poor Power Quality

8. Prevention of malfunction of equipment and

Some of the implications of power quality especially avoided loss of production.
related to power factor and harmonics are: 9. Elimination of unplanned outages and
1. Increase in line & equipment current leading reduction in loss of production and revenue.
to additional ohmic loses 10. Reduction/elimination of failure of equipment
2. Increase in line & equipment current leading due to reduced electrical and thermal stress.
to blocked capacity and/or increased capital 11. Enhanced life / reliability of equipment due to
investment. lower operating temperature due to lower
3. Increased losses leading to higher operating losses
temperatures and consequent reduction in life
of equipment.
5. Conclusions
4. Premature failure of equipment due to
increased electrical and thermal stresses. As already highlighted, the various power
5. Malfunction of equipment disturbance parameters can have very serious cost
6. Poor quality of production implications if not tackled. Equipment manufacturers
7. Unplanned outages leading to loss of are saddled with the responsibility to incorporate, from
production. design stage, devices that could help minimize the
effects of poor power quality. This could be expensive
but in special cases where the need justifies the
4.2 General benefits of Power Quality improvement
expense, it may be possible to arrange an alternative
The following points outline the benefits of Power power source aside the grid where the various power
Quality Monitoring disturbance parameters could be minimized.

1. Reduction in line & equipment currents and

losses and hence lower energy bills. References
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