capacity factor

Capacity factor is a measure used to evaluate the efficiency and output of a power plant. It compares the actual electricity generated by the plant over a certain period to the maximum possible output it could produce if it operated at full capacity continuously during that time. A high capacity factor indicates that the plant is producing a lot of energy relative to its potential, suggesting effective use. Conversely, a low capacity factor may indicate operational issues, maintenance downtime, or variability in energy sources, such as in renewable energy plants that depend on weather conditions.