Economics Renewable Energy Economics Questions Medium
The concept of capacity factor for renewable energy sources refers to the ratio of the actual output of a renewable energy system to its maximum possible output over a given period of time. It is a measure of how efficiently a renewable energy source is utilized and indicates the extent to which the system is able to generate electricity or produce energy compared to its maximum potential. The capacity factor is typically expressed as a percentage and is calculated by dividing the actual energy output by the maximum possible output. A higher capacity factor indicates a more efficient and reliable renewable energy system, as it is able to consistently generate energy closer to its maximum capacity.