Power factor in Mexico: what it is, how to improve it, and why it is key to energy efficiency

Given that energy efficiency is a key factor in the profitability and sustainability of any daily operation in the commercial or industrial sector, power factor (PF) plays a fundamental role, as its correct management allows for the optimization of electrical energy use, reduction of operating costs, and avoidance of penalties. In simple terms, the power factor is a fundamental indicator that measures how much of the energy consumed is converted into useful work and how much is wasted.

If we think of a production line in a manufacturing plant, for example, electrical energy powers robots that assemble parts with precision. The PF measures how much of that energy is actually used for assembly, useful work, and how much is wasted in inefficient processes, such as heat generated by motors or reactive energy that does not directly contribute to the movement of the robots. An optimal power factor therefore ensures that most of the energy is converted into actual production, minimizing waste and optimizing the performance of the production line.

What is power factor and how does it affect electricity consumption?

Power factor is the ratio between active power (the power that performs useful work) and apparent power (the total power consumed). Its value ranges from 0 to 1, where 1 indicates the most efficient use possible.

Remember that electrical devices found in industrial or commercial environments are designed to transform electrical energy into various forms such as mechanical motion, lighting, or heat. However, this conversion is never perfect. The total energy that a system requires to operate, known as apparent power, is not completely converted into useful work, or active power. Part of that energy is dissipated in the form of reactive power, a component necessary for the operation of certain equipment, but which does not contribute directly to the production of work.

Therefore, when the power factor is low, it means that more energy than necessary is being used, which increases operating costs and, consequently, the electricity bill. It also generates an overload on the electrical infrastructure. In Mexico, the Federal Electricity Commission (CFE) penalizes industrial consumers with PFs below 0.95.

Importance of the power factor in industry and the commercial sector

In industrial sectors, wasting electricity is an enemy of productivity. Maintaining an adequate power factor is crucial for several reasons:

• Energy efficiency: a high PF reduces energy losses in the electrical system, improving the overall efficiency of the installation.
• Operating costs: Electricity suppliers often apply additional charges or penalties to users with a power factor below 0.95, due to the higher reactive energy consumption that inefficient use of the electrical grid entails.
• Greater demand on infrastructure: A poor power factor requires oversized transformers and distribution lines, increasing investment and maintenance costs.
• Quality of supply: a low PF can affect the stability and quality of the power supply, causing voltage fluctuations and affecting the performance of other sensitive equipment.

How to improve power factor and avoid penalties?

Since January 2024, the Energy Regulatory Commission (CRE) in Mexico has established new requirements, demanding that medium and high voltage users maintain a power factor of at least 0.95, with a gradual improvement to 0.97 by 2026.

Power factor correction is mainly achieved by installing equipment that compensates for the reactive energy consumed by inductive loads. The most common solutions include:

• Capacitor banks: these devices supply capacitive reactive power that counteracts the inductive reactive power of the loads, raising the power factor.
• Harmonic filters: in addition to correcting the power factor, these devices eliminate harmonic distortions in the electrical network, improving power quality.
• Synchronous motors: operating in overexcitation, they can generate capacitive reactive power, contributing to power factor correction.

To determine the appropriate capacity of correction equipment, it is essential to carry out a detailed analysis of the energy consumption and load profile of the installation. The National Commission for the Efficient Use of Energy (CONUEE) in Mexico offers a tool that helps estimate the reactive power that must be compensated to achieve an optimal power factor, as well as the required investment and potential economic savings.

However, it is recommended to consult experts to perform a power quality analysis. This study measures and records key electrical parameters in real time, such as the power factor or the presence of harmonics in the grid, to identify problems affecting the efficiency of the electrical system. With this information, it is possible to determine what equipment is needed to correct these deficiencies. This helps optimize the performance of the installation, reduce costs due to penalties, and prevent failures in equipment connected to the grid.

Applications and benefits of correcting the power factor

Power factor correction has key applications in various sectors:

• In photovoltaic systems: PF optimization improves the power efficiency of solar panels, preventing losses and ensuring better use of the energy generated.
• In electrical backup systems: installations with high-power UPS, with an adequate PF, reduce the load on batteries and extend their useful life.
• Industrial infrastructure: installing a power harmonic filter stabilizes energy in industrial plants with high demand.
• Commercial and residential buildings: in smaller networks, a low-voltage capacitor bank helps prevent overloads and improve energy distribution.

Power factor regulations and standards in Mexico

The regulatory framework in Mexico establishes strict guidelines on power factor, with penalties for those who do not meet the minimum requirements. Some key provisions include:

• Network Code: requires large consumers to maintain a power factor above 0.95 to ensure the stability of the electrical system.
• CRE regulations: since 2024, electricity rates include additional charges for poor power factors. Currently, the minimum PF must be 0.95 and 0.97 from 2026.
• CFE requirements: Users who do not comply may face significant surcharges on their monthly bills. CFE regulations indicate penalties below 0.90 and bonuses above 0.95.

Given the importance of these regulations, companies must monitor and optimize their electricity consumption to avoid penalties and maximize their operational efficiency. That is why, at Industronic, we support companies in improving their electrical installations with advice and solutions that help them use energy efficiently. Contact us!