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What is the meaning of the term ‘load factor’?
The ratio of peak load to average load over a year
The ratio of average load to peak load over a year
The ratio of total energy consumption to total energy production
The ratio of total energy production to total energy consumption
The ratio of average load to peak load over a year
Load factor is a measure of the utilization of the generating equipment. It is defined as the ratio of average load over a specified period to the maximum peak load occurred in that same period.
IEEE Std 100
Load factor is a measure of the utilization of the generating equipment. It is defined as the ratio of average load over a specified period to the maximum peak load occurred in that same period.
Load Factor=Maximum DemandAverage Load
Load Factor=Maximum Demand×TUnits Generated in T hours
The load factor indicates how efficiently a power station is being utilized. A high load factor suggests that the load is relatively constant throughout the time period, whereas a low load factor implies significant fluctuations between peak and off-peak periods, necessitating excess reserve capacity.
Load factor is always less than 1 or 100%.
A higher load factor leads to a lower cost per unit of electricity generated.
It helps in calculating the economic utilization of power plant capacity.
Reduces the cost per unit generated.
Improves the efficiency of the power system operation.
High peak loads relative to average loads lead to poor utilization.
Requires larger capacity for shorter durations.
Power system planning
Tariff determination
Efficiency analysis of power plants
Option A is the inverse definition and is incorrect.
Options C and D refer to energy ratios rather than load ratios.
Load factor is typically calculated on a daily, monthly, or yearly basis.
B is correct — Load factor is the ratio of average load to peak load over a specific period of time.
Remember that a higher load factor is always desirable for electricity suppliers as it indicates consistent demand, which maximizes revenue while minimizing fixed costs.
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