BusinessAugust 16, 2026
derating
dee-RAY-ting
Definition
The act of reducing the maximum rated capacity or output of a machine or system, typically to ensure safety or prevent failure under extreme operating conditions.
Etymology
Derived from the English prefix 'de-' (meaning down or away) combined with 'rating,' referring to the established performance capability of a device or component.
In the news
In the context of power infrastructure, the author discusses 'thermal derating' of generators, meaning they must operate below their maximum capacity during extreme heat waves to avoid damage or failure.
Chartbook 467 "Mad dogs and ...": Heatwave economics - summer 2026
Read the full article ↗Adam Tooze | Substack