Definition of Power Factor
From Electrical Installation Guide
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The Power Factor is an indicator of the quality of design and management of an electrical installation. It relies on two very basic notions: active and apparent power.
The active power P (kW) is the real power transmitted to loads such as motors, lamps, heaters, and computers. The electrical active power is transformed into mechanical power, heat or light.
In a circuit where the applied r.m.s. voltage is Vrms and the circulating r.m.s. current is Irms, the apparent power S (kVA) is the product: Vrms x Irms.
The apparent power is the basis for electrical equipment rating.
The Power Factor λ is the ratio of the active power P (kW) to the apparent power S (kVA):
The load may be a single power-consuming item, or a number of items (for example an entire installation).
The value of power factor will range from 0 to 1.