The load factor is a factor that shows the electrical energy consumption and the load on the power grid during a given period. It is the ratio of the average power consumption in kilowatt hours (kWh) to the peak load in kilowatts (kW).
The load factor indicates the efficiency of the use of the power grid. If the ratio of average power consumption to peak load is low, then it says that the peak load is German higher than the average load. The power grid is being used inefficiently. It is different if the load factor is high. At values above 0.5, energy consumption is relatively constant. A higher load factor can be achieved by reducing the peak load.