Ratio of Average load to Maximum demand for a given period (for a day, month or year) is termed as Load factor or Plant Load Factor (PLF).
Load Factor = Avg. Load*24/Max Demand*24 ......... For a Day.
This Load factor is very important in the sense of calculating the overall generation cost. It is always less than 1. Higher the LOAD FACTOR of a power station,lesser the overall per unit generation cost of the power station.
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