Category: 📘 Glossary & Acronyms
Installed Capacity (ICAP)
The total electricity generation capability of a power system under specific operating conditions.
Installed capacity represents the maximum electrical output that generating units can provide.
It is typically measured in megawatts (MW).
Installed capacity is used in electricity system planning to determine whether sufficient generation resources exist to meet expected electricity demand.
Installed capacity is an important concept in electricity markets that include capacity auctions or resource adequacy planning mechanisms.
If a power plant can produce a maximum of 500 MW of electricity, that value contributes 500 MW to the system’s installed capacity.
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