Load Factor Formula and Calculations [Daily, Monthly, and Yearly]

The load factor is defined as the ratio of average load to the maximum demand for a given time period.

Mathematically:

load-factor-formula-daily-monthly-yearly

Load factor = Average load/Maximum demand

Load factor can also be expressed in terms of generated units of electricity for a given period of time.

If the plant is in operation for T hours,

Load factor = Electrical Units generated in time / (Maximum demand * time in hours)

Depending on time period the load factor can either be daily load factor, monthly load factor or annual load factor provided the time is a day or month or year.

  • Daily Load Factor = Electrical Units generated in day/ (Maximum demand * 24 hours)
  • Monthly Load Factor = Electrical Units generated in day/ (Maximum demand * 720 hours)
  • Yearly Load Factor = Electrical Units generated in day/ (Maximum demand * 8760 hours)

Good to know

  1. Load factor is always less than 1: Since the average load is always smaller than the maximum demand, the load factor is always smaller than 1
  2. The higher the load the more economical is the overall system: A higher load factor means lesser maximum demand which means lower capacity of the power station as well as the power equipment
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