The power factor (PF) of an electrical circuit is a measure of how efficiently electrical power is being consumed or utilized by the load. It is defined as the ratio of real power (P) to apparent power (S). Mathematically, power factor is expressed as:

Where:

Real Power (P) is the component of power in an AC circuit that performs useful work, measured in watts (W).
Apparent Power (S) is the vector sum of real power and reactive power, measured in volt-amperes (VA).

Power factor can also be calculated as the cosine of the phase angle (φ) between the voltage and current waveforms in an AC circuit:

A power factor of 1 (or 100%) indicates a purely resistive load where real power and apparent power are equal, meaning all the power supplied to the load is utilized for useful work. In this case, the voltage and current waveforms are in phase with each other.

However, in many practical electrical systems, the load may contain inductive or capacitive components, causing a phase shift between the voltage and current waveforms. This results in reactive power being consumed by the load, leading to a reduction in power factor. For inductive loads, such as motors and transformers, the phase shift causes the current to lag behind the voltage waveform, resulting in a lagging power factor (typically between 0 and 1). For capacitive loads, the current leads the voltage waveform, resulting in a leading power factor.

Improving power factor is important for several reasons, including:

1. Efficiency: A higher power factor indicates more efficient utilization of electrical power, reducing energy losses in the distribution system.

2. Reduced Costs: Utilities may charge penalties or surcharges for low power factor, incentivizing consumers to improve power factor to avoid additional charges.

3. Increased Capacity: Improving power factor can increase the effective capacity of electrical distribution systems, allowing more loads to be connected without requiring upgrades to the infrastructure.

Power factor correction techniques, such as adding power factor correction capacitors or using power factor correction equipment, can be employed to improve power factor and optimize energy efficiency in electrical systems.