Diversity factor and Capacity factor

 Diversity factor

The maximum demands of individual loads do not take place 

at the same moment The sum of individual peaks is not used 

as a measure of the maximumloaddemand The maximum 

installed power is usually less than the sum of individual 

maximum demands The diversity factor is greater than or 

equal unity The ratio of sum of individual maximum demands 

of all customers to the maximum demand for a specific 

station is known as the diversity factor

Capacity factor

The capacity factor takes into account the excess of the

installed power of station more than the actual required 

demand The excess of power is known as the reserve power, 

which takes into account the expected future expansion and 

unexpected sudden load increase The capacity factor is 

defined as the ratio of the average load supplied by a station 

to the rated

(installed) capacity of this station The capacity factor is less 

than or equal unityMultiplying the average demand and the 

rated capacity by time, the capacity factor can be defined as 

the ratio between the actual energy produced and that would 
be produced if the plant were operated at its full capacity

capacity factor = Annual energy(kWh)/rated capacity*no. of operating hours