Maximum: Demand Calculation

| Load Type | Typical Demand Factor | | :--- | :--- | | General Lighting (large building) | 0.7 – 0.9 | | Socket Outlets (office) | 0.3 – 0.5 | | Motors (continuous duty) | 1.0 | | HVAC (multiple units) | 0.8 – 1.0 | | Elevators (residential) | 0.5 | | Welders (intermittent) | 0.2 – 0.35 |

For the , MD is the basis for demand charges, often the largest component of an industrial electricity bill. A typical commercial tariff might charge $10 per kW of MD plus $0.10 per kWh. A factory with an MD of 1000 kW thus pays $10,000 in demand charges before any energy charges. Reducing MD by just 100 kW through load shedding or power factor correction saves $1,000 monthly—a powerful incentive.

| Step | Action | Example Value | | :--- | :--- | :--- | | 1 | List all loads with kW ratings | Motor: 75 kW, Lights: 30 kW | | 2 | Apply demand factor per load type | Motor: 0.9 (67.5), Lights: 0.8 (24) | | 3 | Sum to get "Total Diversified Load" | 91.5 kW | | 4 | Estimate diversity factor between major groups | 1.15 | | 5 | = Step 3 / Step 4 | 91.5 / 1.15 = 79.6 kW | | 6 | Measure or estimate actual power factor | 0.85 | | 7 | MD (kVA) = Step 5 / Step 6 | 79.6 / 0.85 = 93.6 kVA | | 8 | Add 15-20% future growth | 93.6 × 1.2 = 112.3 kVA | | 9 | Final MD for equipment sizing | 113 kVA (or ~125 kVA transformer) | maximum demand calculation

Simply put, Maximum Demand is the highest average load (in kilowatts, kW, or kilovolt-amperes, kVA) that an electrical installation draws from the supply network over a specified period—typically 15, 30, or 60 minutes.

Assuming a standard commercial building diversity factor of 1.15: | Load Type | Typical Demand Factor |

Calculation: $$MD = (100 \times 1.0) + (100 \times 0.5) + (50 \times 1.0) = 200 \text kW$$

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MD is not an instantaneous spike; it is an average over a window (typically 15 minutes).