Systematic and sustained power supply is the backbone of any function. Now there is no room for error in terms of faulty power supply. Power Factor Correction plays a critical role in ensuring reduced downtime or defaults in any machinery at industries. These defaults could occur due to reasons including motor failure, overheating of transformers, equipment malfunction, and lastly, irregular power supply to any unit. Power Factor Correction plays the role of ensuring smooth power supply, and in turn elevating the power quality - absolutely negating the possibility of a breakdown in the system or any interruptions.Power factor (PF) is calculated between 0 and 1.0 (usually given as a percentage,0.8 = 80 per cent). If your facility’s PF falls below a certain level (typically 95-96 per cent), your utility will charge a reactive power compensation. This is due to the fact that low PF signifies an inefficient load source that is causing reactive (i.e. non-working) power that the utility has to compensate for. Power Factor = True Power/Apparent Power. Real Power - Power used to run equipment, expressed in kW. Reactive Power - Power which does not end up of any use - loss. Apparent Power - Real Power - Reactive Power. The bottom line is that your PF percentage symbolises how much of the total current is being drawn by you which is actually used to do real work and put to a productive purpose. For example, a PF of 95 per cent signifies that 5 per cent of the current flowing into your facility is non-working power and is pretty much a loss for you. This is why it is critical to explore Schneider Electric India’s power factor techniques.