The Load Factor is the ratio of average load to maximum demand during a specific time period (often one day, month or year).
(or) where energy data (kWh) is available:
The Load Factor is not given in units but rather as a ratio (or) percentage (%).
When the Load Factor is larger it indicates that the load is being utilized more consistently and effectively.
When the Load Factor is lower it shows that the demand is variable or intermittent which results in an inefficient utilization of the electrical infrastructure.
It identifies the effectiveness of the utilization of power.
It provides assistance to utilities in the process of designing tariffs.
It reduced cost per unit of power is the result of a high load factor.
When there is a low load factor the cost per unit increases because there is a poor utilization of capacity.
20–40% of consumers are domestic, 60–80 percent of industrial consumers and above 70% is the standard for utilities.
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