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Improving Power Quality
in IndustryIn industry, over 60% of electricity is consumed by motors, 25% savings in this area would save 7% of the world’s electricity! EIA website
How much electricity is lost in transmission and distribution in the
“According to EIA data, national annual electricity transmission and distribution losses average about 7% of the electricity” EIA website 
The best way to start is with “fixing the basics”. Passive energy efficiency measures include high-efficiency lighting, HVAC systems, installing high efficiency motors, and power factor correction. Improving Power Quality is one of the most cost-effective and economical ways to save money and energy in a facility.
Correcting Poor Power Factor improves Power Quality for motors in Industry. The US Department of Energy, US Motors, and a variety of Schneider Electric White Papers recommend installation of capacitors. National Electric Code Article 460 gives direction on how to install capacitors. Kvar Specifications.
Add power factor correction capacitors to your in-plant distribution system.
Power capacitors serve as leading reactive current generators and counter the lagging reactive current in the system. By providing reactive current, they reduce the total amount of current your system must draw from the utility.
Size motors as close as possible to the horsepower demands of the load.
A lightly loaded motor requires little real power. A heavily loaded motor requires more real power. Since the reactive power is almost constant, the ratio of real power to reactive power varies with induction motor load, and ranges from about 10 percent at no load to as high as 85 percent or more at full load. An oversized motor, therefore, draws more reactive current at light load than does a smaller motor at full load. Low power factor results when motors are operated at less than full-load.

Excerpts Taken from “Energy Management for Motor Driven Systems”, Office of Industrial Technologies, Energy efficiency and renewable energy, US Department of Energy, Chapter 8 Power Factor Correction.