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Economic feasibility of implementing a capacitor bank in a grain storage unit

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  • Veloso, Gustavo
  • Camargo, Meyriele Pires de

Abstract

Grain storage units have high electricity consumption, and the increase in electricity prices has raised their operating costs. These expenses can be reduced by correcting the power factor through the installation of capacitor banks. This study analyzed the economic feasibility of implementing this type of equipment in a grain storage unit located in Brasília, Federal District. The cost of implementing the capacitor bank was compared with the savings resulting from the reduction in monthly reactive energy consumption costs. The calculations consider bank financing of the total value at an interest rate of 8.5% per year. The minimum attractive rate is 4.46% per semester [as]. The economic indicators used were: Net Present Value [NPV], Internal Rate of Return [IRR], and Payback. The investment considered was R$ 26,772.03. The project has an NPV of R$ 7,228.63, an IRR of 9.34% per semester, and a payback period of three years and four months. Based on these results, the investment is attractive and economically viable.

Suggested Citation

  • Veloso, Gustavo & Camargo, Meyriele Pires de, 2017. "Economic feasibility of implementing a capacitor bank in a grain storage unit," Revista IPecege, University of Sao Paulo, vol. 3(3).
    • Handle: RePEc:ags:ipeceg:386267
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