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5 Common Inefficiencies in Industrial Power Systems and How to Fix Them

Industrial and utility-scale power systems are the beating heart of every major operation — from mining and oil & gas sites to commercial infrastructure and renewable energy facilities. When these systems aren’t optimized, the result isn’t just wasted energy — it’s lost productivity, increased maintenance costs, and avoidable downtime.

At Arbutus West Agency Ltd. (AWAL), we’ve worked with hundreds of clients across Western Canada to identify, analyze, and solve the most common causes of inefficiency in electrical power systems. Here’s what we’ve learned — and what you can do to make your system run at peak performance.

1. Reactive Power and Poor Power Factor

The Problem:
One of the most common inefficiencies in industrial electrical networks is low power factor, often caused by inductive loads such as motors, transformers, and welding equipment. When your power factor drops below optimal levels, your system draws more current to perform the same work — leading to energy waste, voltage drops, and higher utility bills.

The Impact:

  • Increased demand charges from utilities
  • Overstressed transformers and conductors
  • Reduced overall system efficiency

How to Fix It:

  • Install power factor correction capacitors or automatic capacitor banks to balance reactive power.
  • Regularly monitor your system with power quality analyzers to detect when correction is needed.
  • Partner with a power system expert (like AWAL) to evaluate your load characteristics and design a tailored correction solution.

Pro Tip:
Using software-based system analysis tools such as PowerLens™ (available through the Arbutus Power Group) can pinpoint where your reactive power losses occur and model correction scenarios before implementation.

2. Oversized or Undersized Equipment

The Problem:
Selecting equipment that’s too large or too small for the actual load profile is another major efficiency killer. Oversized transformers or cables operate inefficiently at partial load, while undersized components create heat buildup and premature failures.

The Impact:

  • Excess energy loss due to transformer magnetizing currents
  • Shortened equipment life from overheating or overloading
  • Unnecessary capital expenditure

How to Fix It:

  • Perform a detailed load study to understand real energy usage over time.
  • Use modern system modeling tools to simulate peak and average conditions.
  • Work with experienced manufacturer representatives who can help you right-size your electrical equipment for your operational realities — not just your nameplate ratings.

Why It Matters:
At AWAL, we represent trusted electrical manufacturers who provide data-driven selection support. That ensures your equipment isn’t just compliant — it’s efficient and built to perform.

3. Inefficient System Layouts and Long Cable Runs

The Problem:
Even with quality components, the physical layout of your power system can create energy losses. Long cable runs, excessive junctions, and poor grounding design increase resistance and reduce voltage at the point of use.

The Impact:

  • Voltage drop and reduced performance in critical equipment
  • Unbalanced loads across feeders
  • Higher line losses and heating in cables

How to Fix It:

  • Plan distribution layouts strategically to minimize distance between sources and loads.
  • Use the right conductor size and material — sometimes upgrading a few critical cable sections yields significant efficiency gains.
  • Balance loads across phases to reduce current imbalances and neutral currents.

Engineering Tip:
If you’re expanding an existing site, conduct a power system layout review before adding new equipment. AWAL’s engineering partners can simulate voltage profiles and identify where system restructuring delivers the biggest impact.

4. Aging Infrastructure and Deferred Maintenance

The Problem:
Many facilities in Western Canada operate with electrical infrastructure that’s decades old. While robust, older components can’t always keep up with today’s higher loads, automation systems, or power quality requirements. Deferred maintenance compounds the issue.

The Impact:

  • Degraded insulation and increased fault risk
  • Reduced transformer efficiency and cooling performance
  • Elevated risk of unplanned outages

How to Fix It:

  • Schedule regular preventive maintenance, including thermographic scans, insulation testing, and breaker contact checks.
  • Upgrade obsolete switchgear, relays, and control systems to modern, more efficient designs.
  • Implement condition-based monitoring to detect early signs of degradation.

Why It Matters:
At Arbutus West Agency, we often help clients integrate modern electrical solutions from our manufacturer partners into legacy systems — extending system life while improving efficiency and safety.

5. Lack of Comprehensive Power System Analysis

The Problem:
Without a clear, data-backed understanding of how your power system behaves under different conditions, inefficiencies remain hidden. You can’t fix what you don’t measure.

The Impact:

  • Inefficient energy use across loads
  • Hidden harmonics and transients that damage equipment
  • Missed opportunities to optimize performance and cost

How to Fix It:

  • Conduct a comprehensive power system analysis that includes:
    • Load flow studies
    • Short-circuit analysis
    • Arc flash risk assessment
    • Harmonic analysis
  • Leverage advanced diagnostic tools like PowerLens™, which AWAL and its partners use to model power systems, identify root causes of inefficiency, and recommend cost-effective improvements.

Example Insight:
PowerLens™ can simulate “what-if” scenarios — such as integrating renewable sources or expanding load centers — allowing engineers to design proactively rather than reactively.

How Arbutus West Agency Helps Optimize Power Systems

AWAL doesn’t just represent manufacturers — we bridge the gap between innovative equipment producers and the engineers, consultants, and end-users who rely on high-performing electrical systems.

Our approach combines:

  • Decades of regional experience (serving Western Canada since 1992)
  • Close relationships with leading electrical manufacturers across North America
  • Analytical expertise through our network and tools like PowerLens™
  • Application support across industries — mining, oil & gas, utilities, renewable energy, and commercial infrastructure

When inefficiencies are identified early, the results are measurable:

  • 10–20% lower energy waste
  • Reduced downtime
  • Improved equipment reliability
  • Extended system life

Key Takeaways

Inefficiency

Root Cause

Solution

Poor power factor

Reactive loads, inductive equipment

Install correction capacitors; analyze loads regularly

Equipment sizing issues

Mismatched load assumptions

Conduct load studies; right-size with manufacturer reps

Inefficient layouts

Long runs, poor balance

Optimize layout; balance phases; upgrade cables

Aging systems

Deferred maintenance, obsolete tech

Modernize components; adopt preventive care

Lack of analysis

Limited visibility

Perform power system analysis; use digital modeling tools

Looking Ahead: Designing for Efficiency from Day One

While fixes can dramatically improve existing systems, the most efficient power systems are designed that way from the start. By integrating performance modeling, right-sized equipment, and reliable manufacturer partnerships early in the design process, facilities can minimize energy loss, reduce environmental impact, and maintain stable power for decades.

Whether you’re upgrading an existing operation or planning a new facility, partnering with an experienced representative like Arbutus West Agency ensures that every component — from transformers to switchgear — is chosen, configured, and supported for maximum efficiency.

Ready to Optimize Your Power System?

Contact Arbutus West Agency Ltd. to discuss how we can help you identify and resolve inefficiencies in your electrical infrastructure.
📍 Serving Western Canada since 1992
🌐 www.arbutuswest.com
📧 info@arbutuswest.com

m Who We Are

Since 1992, Arbutus West has been providing leading sales representation and developing long-lasting customer relationships in the Industrial Electrical Power market in Western Canada.