this represents the equivalent of new large nuclear reactors increasing the load factor and the electricity output offers the possibility to recover more rapidly the capital and the fixed operational costs a conventional power plant with a higher capacity factor has the ability to provide backup capacity for variable renewables as well as ancillary services to the electricity grid primarily fleet management reduces the maximal residual demand imbalance of the power system and thus the need for building additional generation capacity in addition fleet management reduces the average energy production cost by improving the use of different electricity production capacities