The ratio between average power demand and peak power demand over a specific period is a key performance indicator for electrical systems. It provides a measure of the consistency of energy consumption. For instance, if a facility consistently uses 80 kW of power when its maximum recorded demand is 100 kW, the resulting value is 0.8 or 80%. This value reflects how efficiently electrical capacity is being utilized.
Understanding the relationship between average and peak demand is vital for utilities and consumers alike. For utilities, it informs infrastructure planning, pricing strategies, and grid stability management. Higher values indicate more consistent demand, allowing for better resource allocation and potentially lower costs for all customers. Historically, this metric has played a crucial role in optimizing power plant operation and reducing the need for excessive reserve capacity.