'Power quality' technology and engineering that supports energy efficient practice is driving new developments in power factor correction. Instead of simply addressing reactive power demand through VAr tariffs on consumers, power quality technology is now at the heart of current debates surrounding energy efficiency and emissions trading for the future. Reactive power, or kVAr tariffs imposed by supply authorities are designed to minimise reactive power demand which, in turn, reduces real line losses. For example, if a network has a power factor of 0.8, then 36 per cent of system line losses are due to reactive power flows.
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