oo! is not affiliated with the authors of this page or responsible for its content.
Improving Load Factor


Improving Load Factor

Your company could increase efficiency by improving load factor.


Increasing your load factor will reduce the average unit cost (demand and energy) of the
kWh. Depending on your situation, improving your load factor could mean substantial
savings.


The load factor corresponds to the ratio between your actual energy consumption (kWh)
and the maximum power recorded (demand) for that period of time.



WHAT IS LOAD FACTOR?

Consumption (kWh) during the period x 100
Demand (kW) x hours in that period
By analyzing your load profile and your needs, you may be able to improve your load
factor by doing the following:
A. Demand Reduction
Reduce demand by distributing your loads over different times or by installing load
management systems.
B. Increase Production
Keeping the demand stable and increasing your consumption is often a cost-effective way
to increase production while maximizing the use of your power.


In both cases, the load factor will improve and therefore reduce your average unit cost per
kWh.