Load factor is a dimensionless ratio that reflects the efficiency of electrical energy usage over a specific period. It is determined by dividing the average load by the peak load during that period. For example, if a facility consumes an average of 50 kW of power but experiences a peak demand of 100 kW, the resulting load factor would be 0.5 or 50%. This indicates that the facility utilized, on average, only half of its maximum potential demand throughout the defined timeframe.
Understanding load factor provides critical insights into energy consumption patterns and cost management opportunities. A higher load factor generally indicates more consistent energy usage, leading to lower costs per unit of energy consumed and more efficient utilization of electrical infrastructure. Historically, the concept of load factor has been vital for utility companies to optimize generation and distribution capacity, ensuring a reliable and cost-effective power supply for consumers.
