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Frequently Asked Questions about kVA Analysis
kVA stands for kilovolt-amperes and is a measure of apparent power in an electrical system. It represents the total power supplied, including the power that does actual work (kW: kilowatts) and the reactive power (kVAR) needed to maintain voltage levels.
In simple terms, your electricity provider supplies kVA, and you’re often charged based on your maximum demand — the peak amount of kVA your site draws over a given period. This is commonly referred to as a kVA demand charge on commercial electricity bills.
To reduce or avoid excessive kVA demand charges, you can:
- Monitor and manage peak loads using energy management systems
- Stagger the start-up of large equipment to prevent demand spikes
- Improve power factor by installing capacitor banks or power factor correction equipment
- Conduct load balancing across phases to reduce demand inefficiencies
- Schedule operations during off-peak periods when possible.
By keeping your kVA demand within your agreed limits, you can avoid costly surcharges and optimise your energy contract.
- kW (kilowatts) measures real power — the power used to perform work (e.g., lighting, heating, running motors).
- kVA (kilovolt-amperes) measures apparent power, which is a combination of real power and reactive power (needed to maintain voltage in the system).
The ratio between kW and kVA is called the power factor (kW ÷ kVA). A higher power factor indicates more efficient energy use. Businesses with poor power factors tend to have higher kVA demand and may face additional charges.
A detailed kVA review can help align your procurement with your actual usage profile, reducing both contracted and actual costs. kVA analysis plays a key role in smart energy procurement by:
- Identifying excess demand that inflates your energy bills
- Highlighting inefficiencies in load profiles and power factor
- Helping negotiate better supply contracts by setting realistic maximum demand thresholds
- Supporting load-shifting strategies to avoid peak time penalties
- Ensuring right-size supply agreements (avoiding over- or under-capacity).




