Final answer:
The demand factor is the ratio of the maximum demand of a system to the total connected load of the system, expressing how much of the connected load is actually used in peak conditions. This is crucial for power system planning and operation to avoid overloading and to ensure efficient infrastructure design.
Step-by-step explanation:
The definition you are referring to is commonly known as the demand factor in an electrical power system. This term is used to describe the ratio of the maximum demand of a system, or part of a system, to the total connected load of that system or part of the system under consideration. It is essential for planning and operation of power systems to ensure that the system can handle peak demand without overloading.
For instance, if a system has a total connected load of 100 units and the maximum demand recorded or forecasted is 60 units, the demand factor would be 0.6, or 60%. This indicates that the maximum demand is 60% of the total connected load, which helps in determining the system's capacity requirements. The demand factor is important as it helps in designing the infrastructure in a cost-efficient manner, ensuring that it is neither overbuilt nor underutilized.