# When load factor and diversity factor increases the cost of electricity?

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Explanation: Load factor and diversity factor playes an important role in cost of supply of electrical energy. Higher the value of load factor and diversity factor, lower will be the cost per unit generated.

## What is the effect of load factor and diversity factor on the cost of generation?

It plays a key role in determining the overall cost per unit generated. The higher the load factor of the power station, the lesser will be the cost per unit generated, is because a higher load factor means lesser maximum demand. The station capacity is so selected that it must meet the maximum demand.

## What happens when load factor increases?

Increasing your load factor will diminish the average unit cost (demand and energy) of the kWh. … The load factor corresponds to the ratios between your actual energy consumption (kWh) and the maximum power recorded (demand) for that period of time.

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## How does diversity factor affect load factor?

If total installed full load ampere is twice your running load ampere then the diversity factor is two. If total installed full load ampere is four times your load a ampere then the diversity factor is four. Greater the diversity factor, lesser is the cost of generation of power.

## How can the load factor of electricity be increased?

1. This can be improved by lowering peak demand. …
2. The periodical observation of peak demand from monthly billing can be used to decrease the peak demand.
3. The same amount of electricity can be utilized for two months with different peak demands.

## What is meant by load factor and diversity factor?

Definition: Diversity factor is defined as the ratio of the sum of the maximum demands of the various part of a system to the coincident maximum demand of the whole system. The maximum demands of the individual consumers of a group do not occur simultaneously. Thus, there is a diversity in the occurrence of the load.

## How higher load factor indicates more economic operation of a plant?

A higher PLF, on the other hand, will generate a greater total output which will reduce the cost per unit of energy generated. The higher the output, the lesser will be cost per unit. The additional energy produced would also result in an increase in revenue of the plant.

## What is load factor in relation to electrical energy consumption?

Load factor is an expression of how much energy was used in a time period, versus how much energy would have been used, if the power had been left on during a period of peak demand. It is a useful indicator for describing the consumption characteristics of electricity over a period of time.

## When load factor and diversity factor increases dash?

Explanation: Load factor and diversity factor playes an important role in cost of supply of electrical energy. Higher the value of load factor and diversity factor, lower will be the cost per unit generated.

## What is load factor in electricity bill?

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 factor.

## What is the meaning of diversity factor?

‘The diversity factor is the ratio of the sum of the individual maximum demands of the various subdivisions of a system to the maximum demand of the whole system.

## How diversity factors help in reducing fixed charges?

With a given number of consumers the higher the diversity factor of their loads, the smaller will be the capacity of the plant required and consequently the fixed charges due to capital investment will be much reduced.

## What is the importance of load factor?

It represents the maximum power consumed by the load during a specific period of time. It also represents the maximum power generated by a power station during that period of time (neglecting the transmission losses). Knowing the Maximum Load is important as it helps in determining the capacity of the power plant.

## How can you increase the diversity factor of a power station?

A high Diversity Factor in Power System could be obtained by:

1. Giving incentives to farmers and/or some industries to use electricity in the night or light load periods.
2. Using day-light saving as in many other countries.
3. Staggering the office timings.
4. Having different time zones in the country like USA, Australia, etc.
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## How load factor influences generation pricing?

Load factor basically gives an idea of cost of per unit power generation. … Thus a higher value of load factor means, less maximum demand. Less maximum demand can be catered by a low capacity power plant. As the capacity of plant is less, this means the initial as well as running cost will be low.

## Which is the load factor?

Definition: Load factor is defined as the ratio of the average load over a given period to the maximum demand (peak load) occurring in that period. In other words, the load factor is the ratio of energy consumed in a given period of the times of hours to the peak load which has occurred during that particular period.