Maximum Demand Calculation: 4 Essential Factors Explained

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Electrical Design & Calculations
Maximum Demand Calculation: 4 Essential Factors Explained

Sizing transformers, generators and incomers on connected load alone wastes money, while sizing too small causes trips.

Demand Factor Diversity Factor Load Factor Transformer Sizing

A maximum demand calculation estimates the highest load a plant will actually draw, rather than simply adding every nameplate rating. It is the starting point for sizing transformers, generators, cables and main breakers.

Hello everyone, today we are going to learn how a maximum demand calculation works, what demand and diversity factors mean, and how to turn a load list into a realistic kVA figure.
maximum demand calculation

What Is Maximum Demand Calculation?

Maximum demand calculation is the process of estimating the peak kW or kVA an installation will draw during normal operation. It accounts for the fact that not every load runs at full power at the same time, as explained in kW, kVA and kVAR basics.

Connected load is the sum of all nameplate ratings. Maximum demand is almost always lower, because motors run below full load and many loads operate at different times.

Motors-in-a-factory-setting
Image credit: ELEK Software

ELEK notes that not all individual equipment in an installation will operate at full load simultaneously. Standards such as BS 7671 and AS/NZS 3000 give tables for typical diversity.

The result feeds directly into transformer kVA rating and generator selection. A realistic figure avoids both oversizing and nuisance tripping.

4 Essential Factors in Load Estimation

1
Demand Factor
Maximum demand of a group divided by its connected load, always 1 or less.
2
Diversity Factor
Sum of individual maximum demands divided by the maximum demand of the whole system, 1 or more.
3
Load Factor
Average load divided by peak load over a period.
4
Utilization Factor
Actual running load of a machine divided by its rated load.

Demand and utilization factors reduce individual loads, while diversity reduces the combined total. Load factor does not size equipment but shows how well capacity is used.

A high load factor means equipment runs close to its peak most of the time. That improves the economics of transformers and energy contracts.

How the Factors Fit Together

Load ListAll equipment with ratings
Apply UtilizationActual running kW per load
Apply Demand FactorGroup maximum demand
Apply DiversitySystem maximum demand
Convert to kVADivide kW by power factor

Motor loads usually start from their full load current or kW rating. Standby motors are left out if they never run together with duty units.

Lighting, sockets, HVAC and process loads each get their own factor because their usage patterns differ. Grouping them clearly makes the calculation easy to review.

Maximum Demand Calculation Formula With Example

Group demand = Connected load × Demand factor
Maximum demand = Sum of group demands ÷ Diversity factor
kVA = kW ÷ Power factor

Worked example:
Motors 200 kW × 0.8 = 160 kW
Lighting 50 kW × 0.9 = 45 kW
Sockets 60 kW × 0.5 = 30 kW
Sum = 235 kW, diversity = 1.2
Maximum demand = 235 ÷ 1.2 = 195.8 kW
At 0.85 power factor = 230.4 kVA

With future growth of about 20 percent, the designer might select a 315 kVA transformer instead of 250 kVA. Always state the growth margin in the design basis.

The same kVA figure helps with generator sizing, although motor starting may then decide the final size.

Typical Demand Factors by Load Type

Load TypeTypical Demand FactorReason
Continuous process motors0.8 to 0.9Run near full load
Lighting0.9 to 1.0Often all on together
General sockets0.3 to 0.5Rarely fully loaded
HVAC0.7 to 0.9Depends on season
Welding outlets0.3 to 0.5Intermittent use
Standby equipment0Not counted with duty units

These are typical design values, not fixed rules. Plant experience and metered data are always better than generic tables.

For existing plants, a few weeks of logged demand gives the most reliable figure. Energy meters with 15 or 30 minute demand intervals record exactly what the utility bills.

Where the Result Is Used

Transformer Sizing
Choosing kVA rating with margin for growth.
Generator Sizing
Setting prime and standby ratings.
Main Incomer
Selecting ACB or MCCB frame and settings.
Cable Sizing
Sizing incoming feeders and busbars.
Utility Contract
Declaring contract demand with the supplier.
UPS and Backup
Sizing critical load systems.

Incoming feeders are then sized using cable size for load current methods. The demand figure also sets the ratings in the single line diagram.

Declaring too high a contract demand costs money every month. Declaring too low leads to penalties when demand exceeds the limit.

Checking Demand on an Existing Plant

For an existing plant, measured data beats any table. Install a power analyzer on the incomer for at least two to four weeks and record kW, kVA and power factor in 15 minute intervals.

Compare the recorded peak with the design maximum demand calculation. A large gap usually means demand factors were too generous or loads have changed since the original design.

Metering also reveals harmonic loading and poor power factor. Both affect transformer heating, as discussed in power quality issues from VFDs.

Maximum Demand Calculator

Three Group Demand Estimate
Estimated maximum demand
195.8 kW, 230.4 kVA

Add future load as a separate line so the margin stays visible. Round up to the next standard equipment rating.

Benefits
  • Right sized transformers and generators.
  • Lower capital and energy costs.
  • Correct incomer and cable ratings.
  • Realistic utility contract demand.
Common Errors
  • Adding every nameplate without factors.
  • Counting standby units as running.
  • Ignoring future expansion.
  • Using generic factors for unusual loads.

Maximum kVA Demand Reference Guide

GUIDE
Estimation of Actual Maximum kVA Demand
Electrical Installation Guide section on utilization, simultaneity and demand factors

Maximum Demand and Diversity Video

Maximum Demand Calculation FAQ

What is maximum demand calculation?
It estimates the peak load an installation actually draws, not the sum of nameplates.
What is demand factor?
Maximum demand of a group divided by its connected load.
What is diversity factor?
The sum of individual maximum demands divided by the system maximum demand.
Can diversity factor be below 1?
No, it is always 1 or more.
How is kVA found from kW?
Divide kW by the power factor.
Should standby motors be counted?
No, not when they never run with duty units.
What margin should be added?
Many designers add 15 to 25 percent for future growth.

Related Articles

External References

What We Learn Today

  • Peak demand is lower than connected load because loads rarely run at full power together.
  • Demand factor reduces groups, diversity reduces the system total.
  • Divide the final kW by power factor and add growth margin before sizing equipment.
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