Load factor is defined as the ratio of average load to the maximum demand during the given period of time. It may be daily, monthly or yearly as considered. It is always less than 1 because average load is always smaller than the maximum demand. The higher the load factor of a power system, the lesser will be the cost per unit generated because the higher load factor means lower maximum demand. Lower maximum demand means lower capacity of the plant which reduces the cost of the plant. The expression to calculate the maximum demand has mentioned below.
Load Factor = (Average Load) / (Maximum Demand During Given Time Period)
Advantages of Improved Load Factor
The major advantages of improved load factor has been listed below.
- Reduces average unit cost resulting capital saving.
- Efficient use of the energy.
- Balanced load
- Improve reliability
Methods to Improve Load Factor
The primary methods to improve load factor has been listed below.
- Keeping stable load by distributing load over different period of time.
- Increasing efficiency.
- Installing energy management system.
Types of Load Factor
According to different periods of time load factor can be classified into following categories.
- Daily Load Factor
- Weekly Load Factor
- Monthly Load Factor
- Yearly or Annual Load Factor