The capacity factor is defined as the ratio of the total actual energy produced or supply over a definite period, to the energy that would have been produced if the plant (generating unit) had operated continuously at the maximum rating. The capacity factor mainly depends on the type of the fuel used in the circuit.
The capacity factor is computed by dividing the total energy producing by the full load capacity of the plant. Capacity factor is mostly used in generation studies. The annual capacity factor is expressed as


Capacity factor = load factor
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