DEMAND factor: It is defined as the ratio of maximum demand on the power station to its connected load.Demand factor = Maximum demand / Total connected loadThe value of the demand factor is usually less than 1. It is because maximum demand is always less than the connected load. The KNOWLEDGE of the demand factor is vital in determining the capacity of the plant equipment. Utilization factor: It is the ratio of maximum demand on the power station to the rated capacity of the power station.Utilization factor = maximum demand / rated capacDiversity factor: The ratio of the sum of individual maximum demands to the maximum demand on the power station is known as a diversity factor.\(Diversity\;factor = \frac{{Sum\;of\;individual\;maximum\;demands}}{{Maximum\;demand\;on\;power\;station}}\)Plant capacity factor: It is the ratio of ACTUAL energy produced to the maximum POSSIBLE energy that could have been produced during a given period.\(Plant\;capacity\;factor = \frac{{{\rm{Actual\;energy\;produced}}}}{{Maximum\;energy\;that\;could\;have\;been\;produced}}\)\( = \frac{{Average\;demand \TIMES T}}{{Plant\;capacity \times 100}}\)\(= \frac{{Average\;demand}}{{Plant\;capacity}}\)\(Annual\;plant\;capacity\;factor = \frac{{{\rm{Annual\;kWh\;output}}}}{{Plant\;capacity \times 8760}}\)