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What’s a Demand Factor?

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The demand factor is a ratio used to calculate the total demand for a system generated by different portions. It helps engineers and power grid managers make informed design decisions and redirect electrical loads to prevent failures and increase efficiency. The maximum demand factor can be constructed in anticipation of the demand load, and capacity is what the system should be able to handle if all sections handle maximum load at the same time.

In the electric power industry, a demand factor is a ratio used to calculate the amount of total demand for a system generated by different portions. The calculation divides the maximum demand of the plant by the load factor of the part of the plant under consideration. The ratio must have a numerical value less than 1, although the demand factor is usually expressed as a percentage.

The demand factor is used to determine the maximum amount of energy demand that one part of a system can handle. It gives engineers a tool to make informed design decisions and power grid managers the ability to determine which parts of the grid system may need to be relieved. The size of each portion of the system is multiplied by the load factor to reveal the electrical capacity.

In a circuit network, the demand factor of each portion may be less than the sum of all connected parts of the system. In theory, each section of the system should have a capacity equal to the load factor, but in practice this may not always be the case. When the maximum threshold is reached, the amount of electricity may cause breakdowns or shutdowns.

Engineers and energy managers can use demand factor to redirect electrical loads on a power grid system. For example, if there is a sudden increase in demand, managers can direct some of the load to parts of the system that are not close to capacity. This helps prevent failures along sections of the network and makes the system run more efficiently. Projected energy demand can be used in conjunction with known load factors to plan how electricity will be routed throughout the system.

In some cases, portions of the electricity grid can be activated based on how much electricity demand is occurring on the system. Sections can also be used primarily for certain areas that typically require less or more energy. When the network is designed, the maximum demand factor can be constructed in anticipation of the demand load. The load factor of each section is less than 1, as the sum of all parts equals 100 percent of the capacity of the entire system.

Capacity is what the system should be able to handle if all sections handle maximum load at the same time. While this rarely happens, it’s a good point of reference for utility companies to use when deciding whether to upgrade equipment or expand networks. Maximum load factors are typically calculated for a specified period of time, such as 20 minutes.

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