Inductive loads (such as transformers, electric motors, and high-intensity discharge lighting) cause low power factor. Inductive Loads are a major portion of the power consumed in industrial complexes. Unlike resistive loads that create heat by consuming kilowatts, inductive loads require the current to create a magnetic field, and the magnetic field produces the desired work.

The total or apparent power required by an inductive device is a composite of the following:

• Reactive power, the nonworking power caused by the magnetizing current, required to operate the device(measured in kilovars, Kr) Reactive power required by inductive loads increases the amount of apparent power (measured in kilovolt amps, kVA) in your distribution system. The increase in reactive and apparent power causes the power factor to decrease.