A power system supplies load to various types of consumers whose maximum demands generally do not occur at the same time. Therefore the maximum demand on the power system is always less than the sum individual maximum demands of the consumers.
A high diversity factor implied that with a smaller maximum demand on the station, it is possible to cater to the needs of several consumers with varying maximum demands occurring at different hours of the day. A high diversity factor and a high load factor are the desirable characteristics of the load on power station