# The ratio of average load to maximum demand in the power plant is defined as:

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The ratio of average load to maximum demand in the power plant is defined as:

2. diversity factor
3. capacity factor

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Load factor: The ratio of average load to the maximum demand during a given period is known as the load factor.

If the plant is in the operation for T hours

$Load\;factor = \frac{{Avearge\;load \times T}}{{Maximum\;demand \times T}}$

$= \frac{{Units\;generated\;in\;T\;hours}}{{Maximum\;demand \times T}}$

• The load factor may be daily load factor, monthly or annually if the period considered is a day or month or year
• Load factor is always less than 1 because the average load is smaller than the maximum demand
• It plays a key role in determining the overall cost per unit generated.
• Higher the load factor of the power station, the lesser will be the cost per unit generated, it is because a higher load factor means lesser maximum demand
• The station capacity is so selected that it must meet the maximum demand
• Now, lower maximum demand means a lower capacity of the plant which reduces the cost of the plant