Efficiency6 min read

Energy Efficiency with Variable Frequency Drives: Real ROI in Chilean Industry

Departamento de Automatización Sandiman|Energy Efficiency Engineering|February 18, 2026

Variable Frequency Drives (VFDs) are one of the highest-return investments in industrial energy efficiency. In Chile, where industrial electricity rates average US$ 0.11/kWh, savings can be enormous.

How Do VFDs Save Energy?

The affinity law states that power consumed by a pump or fan is proportional to the cube of speed. That is:

  • Reducing speed by 20% → 49% energy savings
  • Reducing speed by 30% → 66% energy savings
  • Reducing speed by 50% → 87% energy savings

Real Case 1: Concentrator Plant — Process Pumps

A copper concentrator in the Antofagasta Region installed VFDs on 6 process pumps of 250 HP each. The previous system used throttling valves to regulate flow.

  • Investment: US$ 180,000 (6 VFDs + installation + commissioning)
  • Annual savings: US$ 142,000 in electricity consumption
  • Payback: 15 months
  • Bonus: 40% reduction in mechanical seal failures due to soft starts

Real Case 2: Pulp Mill — Drying Fans

A pulp mill in the Biobío Region replaced mechanical dampers with VFDs on 4 fans of 150 HP.

  • Investment: US$ 95,000
  • Annual savings: US$ 78,000
  • Payback: 14.6 months

Mistakes When Implementing VFDs

  • Not considering harmonics: VFDs generate harmonics that can affect sensitive equipment. Install harmonic filters when total VFD power exceeds 30% of transformer capacity.
  • Inadequate cables: use shielded (VFD-rated) cables for distances > 30 meters. Standard cables can generate voltage spikes that damage motor windings.
  • Not programming acceleration ramps: overly aggressive ramps generate current spikes and mechanical stress.

Sandiman: Complete Implementation

We offer the complete cycle: feasibility study with real consumption measurement, VFD selection (ABB, Siemens, Danfoss), installation, programming, and commissioning. We include savings monitoring for 6 months post-installation to verify projected ROI.

VFDenergy efficiencydrivessavingsindustry