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TeachMeFinance.com - explain Capacity factor Capacity factor The term 'Capacity factor' as it applies to the area of nuclear science can be defined as ' The ratio of the available capacity (the amount of electrical power actually produced by a generating unit) to the theoretical capacity (the amount of electrical power that could theoretically have been produced if the generating unit had operated continuously at full power) during a given time period. '. The term 'Capacity factor' as it applies to the area of energy can be defined as ' The ratio of the electrical energy produced by a generating unit for the period of time considered to the electrical energy that could have been produced at continuous full power operation during the same period'. Previous 5 Terms: Capacity capacity Capacity (C) Capacity (purchased) Capacity charge Next 5 Terms: Capacity factor (gross) Capacity factor (net) Capacity transaction Capacity utilization cape About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.