From Microchip Technology, Inc.

An induction motor can run only at its rated speed when it is connected directly to the main supply. However, many applications need variable speed operations. This is felt the most in applications where input power is directly proportional to the cube of motor speed. In applications like the induction motor-based centrifugal pump, a speed reduction of 20% results in an energy savings of approximately 50%. Driving and controlling the induction motor efficiently are prime concerns in today's energy conscious world. With the advancement in the semiconductor fabrication technology, both the size and the price of semiconductors have gone down drastically. This means that the motor user can replace an energy inefficient mechanical motor drive and control system with a Variable Frequency Drive (VFD). The VFD not only controls the motor speed, but can improve the motor's dynamic and steady state characteristics as well. In addition, the VFD can reduce the system's average energy consumption.
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