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For an electric utility company, the actual point of peak demand is a single half-hour or hourly period which represents the highest point of customer consumption of electricity. At this time there is a combination of office, domestic demand and at some times of the year, the fall of darkness.
In electrical engineering the load factor is defined as the average load divided by the peak load in a specified time period. [1] It is a measure of the utilization rate, or efficiency of electrical energy usage; a high load factor indicates that load is using the electric system more efficiently, whereas consumers or generators that underutilize the electric distribution will have a low load ...
An inverse way of looking at the issue would be an 'economic energy efficiency,' or economic rate of return on its consumption of energy: how many economic units of GDP are produced by the consumption of units of energy. Referring to the above examples, 1 million Btus consumed with an energy intensity of 8,553 produced $116.92 of GDP for the US ...
For example, an oversized motor - 15 kW - drives a constant 12 kW load whenever it is on. The motor load factor is then 12/15 = 80%. The motor above may only be used for eight hours a day, 50 weeks a year. The hours of operation would then be 2800 hours, and the motor use factor for a base of 8760 hours per year would be 2800/8760 = 31.96%.
A heat rate value of 2 kWh/kWh gives an efficiency factor of 50%. A heat rate value of 4 MJ/MJ gives an efficiency factor of 25%. For other units, make sure to use a corresponding conversion factor for the units. For example, if using Btu/kWh, use a conversion factor of 3,412 Btu per kWh to calculate the efficiency factor.
Solar PV and wind turbines have a capacity factor limited by the availability of their "fuel", sunshine and wind respectively. A hydroelectricity plant may have a capacity factor lower than 100% due to restriction or scarcity of water, or its output may be regulated to match the current power need, conserving its stored water for later usage.