EURONET
Case StudyPower Systems

Power Factor Correction Saves AED 800K Annually for Steel Plant

Euronet's automatic power factor correction (APFC) system brought a large steel plant's power factor from 0.72 to 0.98, eliminating reactive energy charges and reducing transformer stress.

Client
Steel Manufacturing Plant
Location
Sharjah, UAE
Published
Feb 20, 2026
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Power Factor Correction Saves AED 800K Annually for Steel Plant
C
Carlos Mendez
6 min read

The Challenge

The plant's heavy inductive loads (arc furnaces, motors) caused a poor power factor of 0.72, resulting in AED 800K/year in reactive energy penalties and frequent transformer overheating.

The Solution

Euronet engineered an APFC panel with stepped capacitor banks, detuned filters to suppress harmonics, and a SCADA integration for real-time power quality monitoring.

Results

  • Power factor improved from 0.72 to 0.98
  • AED 800K in annual penalty charges eliminated
  • Transformer operating temperature reduced by 12°C
  • Harmonic distortion (THD) reduced to below 5%
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