How does a high diversity factor at a power plant affect its generation cost?

Power Generation MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Power Generation/ Power Plant Engineering

PPSCFPSCNTSPakistan govt jobs
Subject
Power Generationelectrical-engineering-mcqs › power-generation
Published
30 Jun 2018
Last updated
28 May 2026

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Explanation

When the diversity factor is high, the power station can serve loads more efficiently, leading to a decrease in generation cost. This is because the maximum demand is lower relative to the sum of individual demands, allowing better utilization of generation capacity.

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