458 POWER PLANT ENGINEERING

WORKED EXAMPLES
Example 9.1. The maximum demand of a power station is 96000 kW and daily load curve is described as follows :

Time hours 0–6 6–8 8–12 12–14 14–18 18–22 22–24

Load (MW) 48 60 72 60 84 96 48

(i) Determine the load factor of power station.

(ii) What is the load factor of standby equipment
rated at 30 MW that takes up all load in excess of 72 MW ?
Also calculate its use factor.

100 96
Solution. Load curve is shown in Fig. 9.13. 90 84 Load
Energy generated = area under the load curve 80
= 48 × 6 + 60 × 2 + 72 × 4 + 60 × 72 curve
70

Load (MW)
2 + 84 × 4 + 96 × 4 + 48 × 2 60 60 60
= 1632 MWh = 1632 × 103 kWh. 50 48 48
(i) Load factor : 40
1632 ´ 103 30
Average load = = 68000 kW 20
24
Maximum demand = 96000 kW (given) 10
Average load 68000 0 2 4 6 8 10 12 14 16 18 20 22 24
\ Load factor = =
Maximum demand 96000 Time (hours)
= 0.71. (Ans.)
Fig. 9.13
(ii) Load factor of standby equipment :
The standby equipment supplies
E
84 – 72 = 12 MW for 4 hours (14 – 18) Use factor =
C ´ t¢
96 – 72 = 24 MW for 4 hours (18 – 22)
where, E = Energy generated,
\ Energy generated by standby equipment
C = Capacity of the standby equipment, and
= (12 × 4 + 24 × 4) × 103
t¢ = Actual number of hours the plant has been
= 144 × 103 kWh in operation.
Time for which standby equipment remains in
operation (from the load curve) 144 ´ 103
\ Use factor =
= 4 + 4 = 8 hours 30 ´ 103 ´ 8
= 0.6. (Ans.)
144 ´ 103
Average = = 18 × 103 kW
8
18 ´ 103
Load factor = = 0.75. (Ans.)
24 ´ 103
 ECONOMICS OF POWER GENERATION 459

Example 9.2. An electrical system experiences linear

changes in load such that its daily load curve is defined as
follows :

Time Load (MW)

12 PM 24
2 AM 12
6 AM 12
8 AM 60
12 AM 60
12.30 PM 48
1 PM 60
5 PM 60
6 PM 84
12 PM 24

(i) Plot the chronological and load duration curve

for the system.
(ii) Find the load factor.
(iii) What is the utilisation factor of the plant serving
Fig. 9.14
this load if its capacity is 120 MW.
Chronological load and load duration curves are
drawn as shown in Fig. 9.14 (a), (b). The procedure for
constructing the load duration curve from chronological
Solution. load curve is as follows :
— The abscissa of the load duration curve is laid
i) Chronological
( load and load duration curves : off equal to the number of hours in the
chronological curve, in this case 24 hours.
— The criterion of plotting the load duration curve
makes the abscissa at any load ordinate equal
to the length of the abscissa intercepted by that
load ordinate on the chronological curve. Thus :

(i) At the maximum demand or peak load, the

intercept is one point which will be plotted at 0 hour.

(ii) At 70 MW load the intercept is x1 hours and is

plotted as x1 hour on the load duration curve.

(iii) At 55 MW load the intercept is a total of (x2 + x3)

and is plotted accordingly.

(iv) At minimum load of 12 MW the intercept covers

the entire period of 24 hours.
460 POWER PLANT ENGINEERING

Example 9.3.
Following points may be noted : A power station has to supply load as follows :
1. Any point on the load duration curve is a measure Time (hours) : 0–6 6–12 12–14 14–18 18–24
of number of hours in a given period during Load (MW) : 45 135 90 150 75
which the given load and higher loads have
prevailed. (i) Draw the load curve.
(ii) Draw load duration curve.
2. If the chronological curve indicated a constant (iii) Choose suitable generating units to supply the load.
demand during the entire day, it would be of (iv) Calculate the load factor.
rectangular shape and. load duration curve would
(v) Calculate the plant capacity factor.
be an exact duplicate

Solution. (i) Load curve :

(ii) Load factor : The load curve is shown in Fig. 9.15 (a).
From the load duration curve, the average load can (ii) Load duration curve :
be estimated.
The load duration curve is shown in Fig. 9.15 (b).
Average load for the period (iii) Selection of generating units :
Load duration curve will indicate the operation
Total energy in load curve for period schedule of different generating units.
=
Total number of hours in period 1. One generating unit (unit 1) of 45 MW
will run for 24 hours
2. Second generating unit (unit 2) of 45 MW
FG 24 + 12 IJ ´ 2 + 12 ´ 4 + FG 12 + 60 IJ will run for 18 hours
H 2 K H 2 K 3. Third generating unit (unit 3) of 45 MW
F 60 + 48 IJ ´ 1 will run for 10 hours
´ 2 + 60 ´ 4 + G
H 2 K 2 4. Fourth generating unit (unit 4) of 15 MW
F 48 + 60 IJ ´ 1 + 60 ´ 4 + FG 60 + 84 IJ will run for 4 hours
+G One additional unit (unit 5) should be kept as
H 2 K 2 H 2 K standby. Its capacity should be equal to the capacity of
´ 1+ G
F 84 + 24 IJ ´ 6 biggest set, i.e., 45 MW.
=
H 2 K Energy generated
24 = 45 × 6 + 135 × 6 + 90 × 2 + 150 × 4 + 75 × 6
36 + 48 + 72 + 240 + 27 + 27 + 240 + 72 + 324 = 270 + 810 + 180 + 600 + 450 = 2310 MWh
=
24 2310 ´ 103
1086 Average load = kW = 96250 kW
= = 45.2 MW 24
24 Maximum demand = 150 × 103 = 150000 kW
45.2
\ Load factor = = 0.45 or 45%. (Ans.)
84

(iii) Utilisation factor :

Maximum load
Utilisation factor =
Rated capacity of the plant

84
= = 0.70 or 70%. (Ans.)
120

(a) Load curve

 ECONOMICS OF POWER GENERATION 461

(iv) Load factor :

Average load 96250

\ Load factor =
Maximum demand = 150000 = 0.64. (Ans.)

(v) Plant capacity factor :

E
Plant capacity factor = where,
C´t
E = Energy generated (kWh),
C = Capacity of the plant (kW),
= 45 × 4 + 1 × 15 = 195 MW = 195 × 103 kW, and
t = Number of hours in the given period = 24 hours.

(b) Load duration curve

2310 ´ 103
\ Plant capacity factor = = 0.49. (Ans.)
Fig. 9.15
195 ´ 103 ´ 24

Example 9.4.
A generating station has a maximum demand of 5000 kW, and the daily load on the station is as follows :

Load (MW) 1000 1750 4000 1500

Time 11 PM to 6 AM 6 AM to 8 AM 8 AM to 12.00 Noon 12 PM to 1 PM

Load (MW) 3750 4250 5000 2250

Time (hours) 1 PM to 5 PM 5 PM to 7 PM 7 PM to 9 PM 9 PM to 11 PM

(i) Draw the load curve. (ii) Draw the load duration curve.
(iii) Select the size and number of generator units. (iv) What reserve plant would be necessary ?
(v) Load factor. (vi) Plant capacity factor.

Solution. 66000
or Average load = = 2750 kW
24
(i) Load curve is shown in Fig. 9.16 (a). Average load 2750
(ii) Load duration curve is shown in Fig. 9.16 (b). \ Load factor = = = 0.5. (Ans.)
Maximum demand 5000
(iii) Size and number of generator units :
From the load duration curve it is evident that
generating sets of capacity 1000 kW, 1500 kW and 2500 kW
will fulfil the requirement.
(iv) Reserve capacity :
Also, reserve capacity = largest size of the unit in
the station = 2500 kW. (Ans.)
(v) Load factor :
Area under the load curve gives the energy
generated during 24 hours
= 1000 × 7 + 1750 × 2 + 4000 × 4 + 1500 × 1
+ 3750 × 4 + 4250 × 2 + 5000 × 2 + 2250 × 2
= 7000 + 3500 + 16000 + 1500 + 15000 + 8500
+ 10000 + 4500
= 66000 kWh
(a) Load curve
 462 POWER PLANT ENGINEERING

Example 9.6.
The yearly duration curve of a certain plant
can be considered as a straight line from 300 MW to
80 MW. Power is supplied with one generating unit of
200 MW capacity and two units of 100 MW capacity each.
Determine :
(i) Installed capacity (ii) Load factor (iii) Plant factor
(iv) Maximum demand (v) Utilization factor.

Solution.
(b) Load duration curve
The load duration curve is shown in Fig. 9.17.
Fig. 9.16
(vi) Plant capacity factor : 300
Plant capacity factor =
E 66000 Load duration
= = = 0.367. (Ans.) curve
C ´ t (2500 + 1500 + 1000 + 2500) ´ 24 200
Load (MW)

Example 9.5. A 60 MW power station has an annual peak

load of 50 MW. The power station supplies loads having 100
maximum demands of 20 MW, 17 MW, 10 MW and 9 MW. 80
The annual load factor is 0.45. Find :
(i) Average load. (ii) Energy supplied per year. 0
(iii) Diversity factor. (iv) Demand factor. 0 4380 8760
Time (hours)

Solution. Fig. 9.17. Load duration curve.

Capacity of power station = 60 MW
Maximum demand on power station = 50 MW
(i) Average load :
(i) Installed capacity :
Average load
Load factor = Installed capacity = 200 + 2 × 100 = 400 MW. (Ans.)
Maximum demand
Average load
i.e., 0.45 =
50 (ii) Load factor :
\ Average load = 50 × 0.45 = 22.5 MW. (Ans.)
Average load
(ii) Energy supplied per year : Load factor =
Maximum demand
Energy supplied per year
= Average load × number of hours in one year Average load
= (22.5 × 103) × 365 × 24 = 197.1 × 106 kWh. (Ans.)
Total energy in load curve for the period
(iii) Diversity factor : =
Total number of hours in the period
Diversity factor =
Sum of individuals maximum demands 1
80 ´ 8760 + 2
´ (300 - 80) ´ 8760
Simultaneous maximum demand =
8760
20 + 17 + 10 + 9 56
= = = 1.12 (Ans.) 8760 LM1 OP
50 50 = 80 + (300 - 80) = 190 MW
8760 N2 Q
(iv) Demand factor :
190
Maximum demand \ Load factor = = 0.633. (Ans.)
Demand factor = 300
Connected load
50 50
= = = 0.89 (Ans.)
20 + 17 + 10 + 9 56
 ECONOMICS OF POWER GENERATION 463

(iii) Plant factor :

(iv) Maximum energy that could be produced daily :
Average load 190
Plant factor = = Maximum energy that could be produced, operating
Capacity of the plant 400
as per operating schedule
= 0.475. (Ans.)
Actual energy produced
(iv) Maximum demand = 300 MW. (Ans.) =
Plant use factor
(v) Utilization factor :
Utilization factor 4.32 ´ 105
= = 5.268 × 105 kWh. (Ans.)
Maximum load 300 0.82
= = = 0.75. (Ans.)
Rated capacity of the plant 400
Example 9.8.
A power station has the following loads :
Example 9.7. 1. Residential lighting load :
A generating station has a maximum demand Maximum demand = 1200 kW
of 30 MW, a load factor of 0.6, a plant capacity of Load factor = 0.21
0.48, and a plant use factor of 0.82. Find :
Diversity between consumers = 1.32
(i) The daily energy produced.
2. Commercial load :
(ii) The reserve capacity of the plant.
Maximum demand = 2400 kW
(iii) The maximum energy that could be produced if
Load factor = 0.32
the plant were running all the time.
Diversity between consumers = 1.2
(iv) The maximum energy that could be produced
daily, if the plant when running according to operating 3. Industrial load :
schedule were fully loaded. Maximum demand = 6000 kW
Solution. Load factor = 0.82
Maximum demand of the power station = 30 MW Diversity between consumers = 1.22
Load factor = 0.6 Overall diversity factor may be taken as 1.42.
Plant capacity = 0.48 Determine the following :
Plant use factor = 0.82 (i) Maximum demand on system.
(i) The daily energy produced : (ii) Daily energy consumption (total).
Average demand (iii) Overall load factor.
Load factor = (iv) Connected load (total) assuming that demand
Maximum demand
factor for each load is. unity
Average demand
0.6 =
30 Solution.
\ Average demand (i) Maximum demand on system :
= 30 × 0.6 = 18 MW or 18000 kW Group diversity factor
Daily energy product = Average demand × number Sum of individual maximum demands
of hours =
Actual maximum demand of the group
= 18000 × 24 = 4.32 × 105 kWh. (Ans.)
1200 + 2400 + 6000
(ii) Reserve capacity of the plant : \ 1.42 =
Maximum demand on system
Average demand i.e., Maximum demand on system
Plant capacity factor =
Installed capacity 1200 + 2400 + 6000 = 6760.5 kW. (Ans.)
18000 =
1.42
0.48 =
Installed capacity (ii) Daily energy consumption :
18000 Average demand
\ Installed capacity = = 37500 kW Load factor =
0.48 Maximum demand
\ Reserve capacity of the plant or Average demand = Maximum demand × load factor
= Installed capacity – maximum demand = 1200 × 0.21 + 2400 × 0.32
= 37500 – 30000 = 7500 kW. (Ans.) + 6000 × 0.82
(iii) Maximum daily energy produced when = 5940 kW
running all the time \ Daily energy consumption
= 4.32 × 105 kWh. (Ans.) = 5940 × 24 = 142560 kWh. (Ans.)
 464 POWER PLANT ENGINEERING

(iii) Overall load factor : Solution. (i) Maximum demand :

Average demand Maximum demand on power station
Overall load factor =
Maximum demand Sum of individual maximum demands
=
5940 Diversity factor
= = 0.878. (Ans.) 10 + 5 + 8 + 7
6760.5 = 20 MW or 20000 kW. (Ans.)
=
(iv) Connected load : 1.5
Maximum demand
= 1200 × 1.32 + 2400 × 1.2 + 6000 × 1.22 = 11784 kW (ii) Annual energy supplied :
Connected load Average load = Maximum demand × load factor
Maximum demand 11784 = 11784 kW. (Ans.) = 20000 × 0.6 = 12000 kW
= = Annual energy supplied from the station
Demand factor 1
= Average load × (365 × 24) = 12000 × (365 × 24)
Example 9.9. = 105.12 × 106 kWh. (Ans.)
The following data relates to a steam power plant : Installed capacity and number of units :
Maximum demand = 30000 kW Considering 50% increase in maximum demand on
Load factor = 0.42 the power station in next five years, the installed capacity
should be 30000 kW or 30 MW. (Ans.)
Coal consumption = 1.1 kg/kWh
Select, four similar units each of 7.5 MW capacity
Boiler efficiency = 84%
because minimum number of spare parts will be required
Turbine efficiency = 88% to be stored, at the same time three units can supply present
Price of coal = ` 70 per tonne. maximum demand and fourth unit can be taken out for
Determine the following : routine maintenance or during breakdown without any
(i) Thermal efficiency of the plant. disruption in supply.
(ii) Coal bill of the plant for one year.
Example 9.11.
The peak load on a 50 MW power station is
Solution. (i) Thermal efficiency of the plant :
39 MW. It supplies power through four transformers whose
Thermal efficiency of the plant connected loads are 17, 12, 9 and 10 MW. The maximum
= Boiler efficiency × turbine efficiency demands on these transformers are 15, 10, 8 and 9 MW
= 0.84 × 0.88 = 0.7392 or 73.92%. (Ans.) respectively. If the annual load factor is 50% and the plant
(ii) Coal bill : is operating for 65% of the period in a year, find out the
following :
Average demand on station = Maximum demand ×
load factor (i) Average load on the station (ii) Energy supplied per year
= 30000 × 0.42 = 12600 kW (iii) Demand factor (iv) Diversity factor
\ Energy generated per year (v) Power station use factor.
= 12600 × (365 × 24) kWh Solution.
\ Coal consumption Power station rated capacity = 50 MW or 50000 kW
= 12600 × (365 × 24) × 1.1 kg per year Maximum demand on the power station
\ Coal bill = 39 MW or 39000 kW
12600 ´ (365 ´ 24) ´ 1.1 ´ 70 = ` 8498952. (Ans.) Sum of connected load
=
1000 = 17 + 12 + 9 + 10 = 48 MW or 48000 kW
Sum of maximum demands on the transformers
Example 9.10. = 15 + 10 + 8 + 9 = 42 MW or 42000 kW
A power station is to supply for regions Annual load factor = 50% or 0.5
of load whose peak loads are 10 MW, 5 MW, 8 MW and Plant operating period
7 MW. The diversity factor of the load at the station is 1.5 = 0.65 × (365 × 24) = 5964 hours.
and the average annual load factor is 0.6. Calculate : (i) Average load on the station :
(i) Maximum demand on the station. Average load on the station = Maximum demand ×
(ii) Annual energy supplied from the station. load factor
Suggest the installed capacity and the number of
units taking all aspects into account
.
 ECONOMICS OF POWER GENERATION 465

= 39000 × 0.5 = 19500 kW. (Ans.) Standby power station :

(ii) Energy supplied per year : 17 ´ 106
Annual average load = = 1940.6 kW
Energy supplied per year = Average load × (365 × 24) 365 ´ 24
= 19500 × 8760 = 170.82 × 106 kWh. (Ans.) (i) Load factor
Average load 1940.6
(iii) Demand factor : = =
Maximum demand 18 ´ 1000
Maximum demand
Demand factor = = 0.1078. (Ans.)
Sum of connected load
Energy generated
39000 (ii) Capacity factor =
= = 0.8125. (Ans.) Capacity ´ (24 ´ 365)
48000
17 ´ 106
(iv) Diversity factor : =
22 ´ 1000 ´ 24 ´ 365
Sum of maximum demands
Diversity factor = = 0.088. (Ans.)
Maximum demand
42000 Example 9.13.
= = 1.077. (Ans.) A base load station having a capacity of
39000
18 MW a standby station having a capacity of 20 MW share
(v) Power station use factor : a common load. Find (i) annual load factor, (ii) use factor,
Energy generated per year and (iii) capacity factor of the two power stations from the
Use factor = following data :
Rated capacity ´ num. of operating hours
170.82 ´ 106 Annual standby station output = 7.35 × 106 kWh
= = 0.6 or 60%. (Ans.)
50000 ´ 5694 Annual base load station output = 101.35 × 106 kWh
Peak load on the standby station = 12 MW
Example 9.12. Hours of use of standby station during the year
A base load power station and standby = 2190 hours.
power station share a common load as follows :
Base load station annual output = 180 × 106 kWh
Solution. Standby station :
Base load station capacity = 42 MW
Capacity of standby station = 20 MW or 20000 kW
Maximum demand on base load station = 36 MW
Maximum demand on standby station
Standby station capacity = 22 MW
= 12 MW or 12000 kW
Standby station annual output = 17 × 106 kWh
Annual standby station output = 7.35 × 106 kWh
Maximum demand (peak load) on stand by station = 18 MW
Determine the following for both power stations : Hours of use of standby station during the year
= 2190 hours
(i) Load factor. (ii) Capacity (or plant) factor.
Annual average load of standby station
Solution. Base load station : Output in kWh 7.35 ´ 106 = 839 kW
= =
365 ´ 24 365 ´ 24
180 ´ 106
Average load = = 20548 kW (i) Annual load factor :
365 ´ 24
Average load 20548 Annual load factor = Annual average load = 839
(i) Load factor = = Maximum demand 12000
Maximum demand 36 ´ 103
= 0.57. (Ans.) = 0.07 or 7%. (Ans.)
(ii) Use factor :
Energy generated
(ii) Capacity factor =
Capacity of plant ´ (24 ´ 365) Total kWh generated
Use factor =
6 Rated capacity of station
180 ´ 10
= = 0.489. (Ans.) ´ Number of operating hours
42 ´ 1000 ´ 24 ´ 365
 466 POWER PLANT ENGINEERING

COST ANALYSIS
7.35 ´ 106
=
20000 ´ 2190
Example 9.14.
= 0.1678 or 16.78%. (Ans.)
(iii) Capacity factor : Determine the annual cost of a feed water
softner from the following data :
Average load 839 Cost = ` 96000
Capacity factor = =
Rated capacity 20000 Salvage value = 5%
= 0.0419 or 4.19%. (Ans.) Life = 10 years
Base load station : Annual repair and maintenance cost = ` 3000
Capacity of base load station Annual cost of chemicals = ` 6000
= 18 MW or 18000 kW Labour cost per month = ` 360
Assume maximum demand on base load station Interest on sinking fund = 5%.
equal to its rated capacity i.e., 18 MW.
Annual base load station output = 101.35 × 106 kWh Solution.
Annual average load of base load station Capital cost, P = ` 96000.
Output in kWh 101.35 ´ 106 5
= = = 11570 kW Salvage value, S= × 96000 = ` 4800
365 ´ 24 365 ´ 24 100
Rate of interest on sinking fund, i = 5% or 0.05
(i) Annual load factor : Life, n = 10 years
Annual load factor
Annual average load
Annual sinking fund payment = (P – S)
iLM OP
=
Maximum demand (1 + i) n - 1
N Q
11570
= = 0.643 or 64.3%. (Ans.) LM 0.05 OP = ` 7250.8
18000 = (9600 – 4800) 10
(ii) Use factor : N (1 + 0.05) - 1Q
Total kWh generated Total cost per year :
Use factor =
Rated capacity ´ Number of operating hours Annual sinking fund = ` 7250.8
101.35 ´ 10 Annual repair and maintenance cost = ` 3000
= = 0.643 or 64.3%. (Ans.)
18000 ´ (365 ´6 24) Annual cost of chemicals = ` 6000
(iii) Capacity factor : Annual labour cost = (360 × 12) = ` 4320
Average load 11570 Total cost per year
Capacity factor = =
Rated capacity 18000 = 7250.8 + 3000 + 6000 + 4320 = ` 20570.8. (Ans.)
= 0.643 or 64.3%. (Ans.) Example 9.15.
The output of a generating station is 500 × 106
kWh per year and average load factor is 0.7. If the
annual fixed charges are ` 50 per kW of installed plant and
annual running charges are 5 per kWh, what is the cost per
kWh of energy at the bus bar.
Solution.
Output energy per annum = 500 × 106 kWh
6
Average load= Annual average load = 500 ´ 10 = 57077 kW
365 ´ 24 365 ´ 24
Average load 57077
Maximum demand = = = 81538 kW
Load factor 0.7
Assuming installed capacity equal to maximum demand,
Fixed charges = 50 × 81538 = ` 4076900
5
Running charges = ` × 500 × 106 = ` 25000000
100
Total annual charges = ` 25000000 + ` 4076900
= ` 29076900
 ECONOMICS OF POWER GENERATION 467

Cost of energy at bus-bar Cost of coal including transportation

Total annual charges = ` 4.4 per kN
=
Output energy per annum Operating cost
= ` 500000
29076900
= Plant maintenance cost :
500 ´ 106
(i) Fixed = ` 20000 per annum
= ` 0.058 or 5.8 p/kWh. (Ans.)
(ii) Variable = ` 30000 per annum
Example 9.16. From the following data calculate the cost
of generation per unit delivered from the power plant : Installed plant capacity
Installed capacity of the power plant = 200 MW = 10000 kW
Annual load factor = 0.4 Maximum demand
= 9000 kW
Capital cost of power plant = ` 280 lacs
Annual load factor
Annual cost of fuel, oil, salaries, taxation
= 0.6
= ` 60 lacs.
Consumption of coal
Interest and depreciation = 13%. = 255000 kN
Solution. Installed capacity of the power plant Determine the following :
= 200 MW or 200 × 103 kW (i) Cost of power generation per kW per year.
Assuming maximum demand equal to installed (ii) Cost per kWh generated.
capacity,
(iii) Total cost of generation per kWh.
Maximum demand = 200 × 103 kW
Transmission or primary distribution chargeable to
Annual load factor = 0.4 generation.
Total units generated per annum Solution. Installed capacity of plant
= Maximum demand × load factor × (365 × 24) = 10 MW or 10000 kW
= 200 × 103 × 0.4 × (365 × 24) = 700.8 × 106 kWh Total cost of plant
Capital cost of the power plant = ` 280 × 105 = ` 10000 × 1200 = ` 12 × 106
Annual interest and depreciation Annual interest, insurances and taxes
13 = ` 0.05 × 12 × 106 = ` 0.06 × 106
= ` 280 × 106 × = ` 3.64 × 106
100 = ` 600000
Annual cost of fuel, oil, salaries, taxation etc. Annual depreciation
= ` 60 × 105 or 6 × 106 = ` 0.05 × 12 × 106 = ` 0.6 × 106
Total annual cost = ` 600000
= ` 3.64 × 106 + ` 6 × 106 = ` 9.64 × 106 Annual interest, insurance, taxes and depreciation
Generating cost on primary distribution
Total annual cost = ` 0.05 × 500000 = ` 25000
=
Total units generated per annum Annual plant maintenance cost (fixed)
= ` 20000
9.64 ´ 106
= Total fixed cost
700.8 ´ 106
= ` (600000 + 600000 + 25000 + 20000)
= ` 0.0137 or 1.37 p/kWh. (Ans.)
= ` 1245000
Example 9.17. The following data relate to a 10 MW Annual operating cost
power station : = ` 500000
Cost of plant = ` 1200 per kW Annual plant maintenance cost (variable)
Interest, insurances and taxes = ` 30000
= 5% per annum Annual cost of coal
Depreciation = 5% = ` 4.4 × 255000 = ` 1122000
Cost of primary distribution Total annual running cost
= ` 500000 = ` (500000 + 300000 + 1122000)
Interest, insurances, taxes and depreciation = ` 1652000
= 5% Maximum demand
= 9000 kW
 468 POWER PLANT ENGINEERING

Annual load factor Annual cost of fuel and lubricants

= 0.6 = ` 70 lacs = ` 7 × 106
Average load Annual cost of transport and storage
= 9000 × 0.6 = 5400 kW = ` 10 lacs = ` 1 × 106
Annual energy generated Annual cost of salaries and wages
= 5400 × 365 × 24 = 47.3 × 106 kWh = ` 12 lacs = ` 1.2 × 106
(i) Cost of power generation per kW per year : Annual miscellaneous cost
Annual cost per kW of maximum demand
= ` 2 lacs = ` 0.2 × 106
Fixed cost per annum Annual interest and depreciation
=
Maximum demand 15
= ` 350 × 106 × = ` 52.5 × 106
1245000 100
= = ` 138.33. (Ans.)
9000 Total annual cost
(ii) Cost per kWh generated : = ` (0.5 + 7 + 1 + 1.2 + 0.2 + 52.5) × 106
Annual cost/kWh = ` 62.4 × 106
Annual running cost Total energy generated per annum
=
Annual energy generated = Maximum demand × average load factor
1652000 × (365 × 24)
= = ` 0.035 or 3.5 p. (Ans.)
47.3 ´ 106 = 200000 × 0.6 × (365 × 24)
(iii) Total cost per kWh : = 1051.2 × 106 kWh
Total cost per kWh Cost of generation
Total annual cost Total annual cost
= =
Annual energy generated Total units generated
1245000 + 1652000 62.4 ´ 106
= = = ` 0.0594 per kWh
47.3 ´ 106
1051.2 ´ 106
= ` 0.06 or 6 p. (Ans.) or 5.94 paise per kWh. (Ans.)
Example 9.18. Annual 200 MW steam power station is If the load factor is improved to 75% :
estimated to cost ` 350 millions. Other costs are as follows :
Total energy generated per annum
Insurance and taxes
= 200000 × 0.75 × (365 × 24)
= ` 5 lacs per annum
= 1314 × 106 kWh
Fuel and lubricants
= ` 70 lacs per annum Annual operating cost
Transport and storage = ` (0.5 + 7 × 1.1 × 106 + 1 + 1.2
= ` 10 lacs per annum + 0.2 + 52.5) × 106
= ` 63.1 × 10 6
Salaries and wages
= ` 12 lacs per annum Cost of generation
Miscellaneous Total annual cost
=
= ` 2 lacs per annum Total units generated
Reckoning interest and depreciation at 15% per
63.1 ´ 106
annum of capital cost, determine : = = ` 0.048 per kWh
1314 ´ 106
The cost of energy generated per unit if the power
or 4.8 paise per kWh. (Ans.)
station works at an average load factor of 0.6. What would
it be, if the load factor be increased to 75% with a consequent Example 9.19. A steam station has two 110 MW units.
increase in fuel costs by 10%, other costs remaining the Following cost data are given :
same ?
Particulars Units A Units B
Solution. Capacity of steam power station
= 200 MW or 200000 kW Capital cost ` 2400 per kW ` 3000 per kW
Cost of power station Fixed charge rate 10% 10%
= ` 350 millions = ` 350 × 106 Capital factor 0.55 0.60
Annual cost of insurance and taxes Fuel consumption 1 kg/kWh 0.9 kg/kWh
= ` 5 lacs = ` 0.5 × 106 Fuel cost ` 96 per 1000 kg ` 96 per 1000 kg
 ECONOMICS OF POWER GENERATION 469

Annual cost of 20% of annual 15% of annual 10

=` × 3000 × 110 × 1000 = ` 33 × 106
operation, labour fuel cost fuel cost 100
maintenance and Expected annual energy output
supplies = (110 × 1000) × (365 × 24) × 0.6
Utilisation factor 1 1 = 57.816 × 107 kWh
Calculate the following : Annual fuel consumption
(i) Annual plant cost and generation cost of unit A. = 0.9 × 57.816 × 107 = 52.0344 × 107 kg
(ii) Annual plant cost and generation cost of unit B. 96
Fuel cost = × 52.0344 × 107 = ` 49.95 × 106
(iii) Overall generation cost of the station. 100
Annual cost of maintenance, repair etc.
Solution. (i) Annual plant cost and generation cost
of unit A : 15
=` × 49.95 × 106 = ` 7.4925 × 106
Annual fixed cost of unit A 100
Annual operating cost
10
= × 2400 × (100 × 1000) = Fuel cost + maintenance cost
100
= ` (49.95 × 106 + 7.4925 × 106)
= ` 26.4 × 106
= ` 57.4425 × 106
Annual energy output
Annual plant cost of unit B
= Maximum demand × capacity factor
= Fixed cost + operating cost
× no. of hours
= ` 33 × 106 + 57.4425 × 106
= (100 × 1000) × 0.55 × (356 × 24)
= ` 90.4425 × 106 (Ans.)
= 52.998 × 107 kWh
Generation cost of unit B
Annual fuel consumption
= 1 × 52.998 × 107 Annual plant cost
=
= 52.998 × 107 kg Annual energy output
96 90.4425 ´ 106
Fuel cost = × 52.998 × 107 = ` 50.87 × 107 =
1000 57.816 ´ 107
Annual cost of operating labour, maintenance and = ` 0.1564 or 15.64 p/kWh. (Ans.)
supplies (iii) Overall generation cost of the station
= 20% of annual cost Sum of annual plant cost of both units
=
20 Sum of energy supplied
= × 50.87 × 106 = ` 10.174 × 106
100 87.444 ´ 106 + 90.4425 ´ 106
The annual operating cost of unit A =
52.998 ´ 107 + 57.816 ´ 107
= Annual fuel cost + annual cost of = ` 0.16 or 16 p/kWh. (Ans.)
operation, labour and maintenance
Example 9.20. The annual costs of operating a
= ` (50.87 × 106 + 10.174 × 106)
15000 kW thermal power station are as follows :
= ` 61.044 × 106
Cost of plant = ` 1080 per kW
Annual plant cost of unit A Interest, insurance, taxes on plant
= Annual fixed cost + annual operating cost = 5 per cent
= ` (26.4 × 106 + 61.044 × 106) Depreciation = 5 per cent
= ` 87.444 × 106. (Ans.) Cost of primary distribution system
Generation cost of unit A = ` 600000
Annual plant cost Interest, insurance, taxes and depreciation
= on primary distribution system
Annual energy output
= 5 per cent
87.444 ´ 106 Cost of secondary distribution system
= = ` 0.165
52.998 ´ 107 = ` 1080000
or 165.5 p/kWh. (Ans.) Interest, taxes, insurance and depreciation on
(ii) Annual plant cost and generation cost of secondary distribution system
unit B : = 5 per cent
Annual fixed cost of unit B Maintenance of secondary distribution system
= ` 216000
 470 POWER PLANT ENGINEERING

Plant maintenance cost Plant depreciation

(i) Fixed cost = ` 36000 = ` 810000
(ii) Variable cost = ` 48000 Interest, taxes, insurance and depreciation on :
Operating costs = ` 720000 Primary distribution system
Cost of coal = ` 7.2 per kN = ` 30000
Consumption of coal = 300000 kN Secondary distribution system
= ` 54000
Dividend to stock holders = ` 1200000
Fixed part of plant maintenance
Energy loss in transmission = 10 per cent
= ` 36000
Maximum demand = 14000 kW
Dividend of stock-holder
Diversity factor = 1.5
= ` 1200000
Load factor = 0.7
\ Total fixed cost
Determine : (i) Charge per kW per year = ` 2940000
(ii) Rate per kWh. Sum of maximum demand of consumers
Solution. Maximum demand = 14000 kW = Maximum demand × diversity factor
Average load = 14000 × 1.5 = 21000 kW
Load factor = 0.7 =
Maximum demand 2940000
\ Average load = 0.7 × 14000 = 9800 kW Charge per kW per year =
21000
\ Energy generated per year = ` 140 per kW. (Ans.)
= 9800 × (365 × 24) (ii) Rate per kWh :
= 85.8 × 106 kWh Variable costs
Cost of plant = Capacity of plant × cost per kW Cost of coal = ` 2160000
= 15000 × 1080 = ` 16.2 × 106 Plant maintenance = ` 48000
Interest, insurances, taxes on plant Operating costs = ` 720000
5 Maintenance of secondary distribution system
= × 16.2 × 106 = ` 810000
100 = ` 216000
5 Total variable cost = ` 3144000
Plant depreciation = × 16.2 × 106 = ` 810000
100 Energy loss in transmission
Cost of primary distribution system = ` 600000 = 10 per cent
Interest, insurance, taxes, depreciation on primary \ Net energy transmitted
distribution system = 0.9 × 85.8 × 106
5 = 77.22 × 106 kWh
= × 600000 = ` 30000
100 3144000
Cost of secondary distribution system = ` 1080000 \ Rate per kWh =
77.22 ´ 106
5 = ` 0.0407
= × 1080000 = ` 54000
100 or 4.07 p/kWh. (Ans.)
Cost of coal = 7.2 × 300000 = ` 2160000. Example 9.21. It is proposed to supply a load with a
(i) Charge per kW per year : maximum demand of 100 MW and a load factor of 0.4.
Fixed costs Choice is to be made from nuclear, hydro and steam power
Interest, taxes and insurance on plant plants. Calculate the overall cost per kWh in each scheme.
= ` 810000
Cost Nuclear power plant Hydro-power plant Steam power plant

Capital per kW installed ` 6000 ` 4320 ` 2160

Interest 10% 10% 12%
Depreciation 10% 8% 12%
Operating cost per kWh 12 paise 6 paise 18 paise
Transmission and distri-
bution cost/kWh 0.24 paise 0.96 paise 0.24 paise
 ECONOMICS OF POWER GENERATION 471

Solution. (i) Nuclear power plant : 12

Depreciation =` × 21.6 × 107
Capital cost = 6000 × (100 × 103) = ` 60 × 107 100
10 = ` 25.92 × 106
Interest = × 60 × 107 = ` 6 × 107 Annual fixed cost = Interest + depreciation
100
Depreciation = ` 6 × 107 = ` 2 × 25.92 × 106 = ` 51.84 × 106
Annual fixed cost (interest + depreciation) Running cost/kWh = 18 + 0.24 = 18.24 p
= ` 12 × 107 Overall cost/kWh = Running cost/kWh
Energy generated per year + fixed cost/kWh
= Average load × (365 × 24) 51.84 ´ 106
= 18.24 + × 100
= Load factor 350.4 ´ 106
× maximum demand × (365 × 24) = 18.24 + 14.79 = 33.03 p. (Ans.)
= 0.4 × (100 × 103) × (365 × 24) From the above calculations it is concluded that
= 350.4 × 106 kWh overall cost/kWh is minimum in case of hydropower plant.
Running cost per kWh Example 9.22. A power plant of 180 MW installed
= Operating cost per kWh capacity has the following data :
+ transmission and distribution Capital cost = ` 2160/kW installed
cost per kWh Interest and depreciation = 12 per cent
= 12 + 0.24 = 12.24 p Annual load factor = 0.6
\ Overall cost per kWh Annual capacity factor = 0.5
= Running cost/kWh + fixed cost/kWh Annual running charges = ` 36 × 106
12 ´ 107 Energy consumed by power auxiliaries
= 12.24 + × 100
350.4 ´ 106 = 6 per cent
= 46.48 p. (Ans.) Calculate : (i) Reserve capacity
(ii) Hydro-electric power plant : (ii) Generation capacity.
Capital cost = 4320 × 100 × 103 = ` 43.2 × 107
Average load
10 Solution. Load factor =
Interest = × 43.2 × 107 = ` 43.2 × 106 Maximum demand
100
Average load
8 and Capacity factor =
Depreciation = × 43.2 × 107 = 34.56 × 106 Rated capacity
100
Annual fixed cost \ Load factor Rated capacity
=
= Interest + depreciation Capacity factor Maximum demand
= ` (43.2 + 34.56) × 106 0.6 180
=
= ` 77.76 × 106 0.5 Maximum demand
Running cost per kWh \ Maximum demand
= (Operation cost + transmission cost) 0.5 ´ 180
= = 150 MW.
= (6 + 0.96) p = 6.96 p 0.6
(i) Reserved capacity :
Overall cost per kWh
Reserved capacity
= Running cost/kWh
= Installed/rated capacity – maximum demand
+ annual fixed cost/kWh
= 180 – 150 = 30 MW. (Ans.)
77.76 ´ 106
= 6.96 + × 100 (ii) Generation cost :
350.4 ´ 106 Average load = Load factor × maximum demand
= 6.96 + 22.2 = 29.16 p. (Ans.)
= 0.6 × 150 = 90 MW
(iii) Steam power plant :
Energy generated per annum
Capital cost = ` 2160 × 100 × 103
= 90 × 103 × (365 × 24)
= ` 21.6 × 107
= 788.4 × 106 kWh
12 Energy consumed by auxiliaries
Interest =` × 21.6 × 107
100
6
= ` 25.92 × 106 = × 788.4 × 106 = 47.3 × 106 kWh
100
 472 POWER PLANT ENGINEERING

Net energy available When the load factor is raised to 0.5 :

= 788.4 × 106 – 47.3 × 106 Average load = Load factor × maximum demand
= 741.1 × 106 kWh = 0.5 × 180 = 90 MW
Fixed cost of generation Energy produced per annum
= Interest + depreciation = 90 × 103 × 365 × 24
12 = 788.4 × 106 kWh
=` × 2160 × 180 × 103 = ` 46.65 × 106
100 Total annual cost will not change.
Total annual cost 90 ´ 106
= Running cost + fixed cost \ Cost per kWh = × 100
788.4 ´ 106
= 36 × 106 + 46.65 × 106 = ` 82.65 × 106 = 11.41 p. per kWh
\ Generation cost
\ Saving in cost per kWh
82.65 ´ 106 = 14.27 – 11.41
= × 100 = 11.1 p. (Ans.)
741.1 ´ 106 = 2.86 p. (Ans.)
Example 9.23. A power station has the installed capacity Example 9.24. A 60 MW generating station has the
of 180 MW. Calculate the cost of generation, other data following data :
pertaining to power station are given below : Capital cost = ` 18 × 106
Capital cost = ` 300 × 106
Annual taxation = ` 0.48 × 106
Rate of interest and depreciation Annual salaries and wages = ` 1.44 × 106
= 18 per cent Cost of coal = ` 72 per tonne
Annual cost of fuel oil, salaries and taxation Calorific value (C.V.) of coal = 23000 kJ/kg
= ` 36 × 106 Rate of interest and depreciation
Load factor = 0.4 = 12 per cent
Also calculate the saving in cost per kWh if the Plant heat rate = 138000 kJ/kWh at 100% capacity
annual load factor is raised to 0.5.
Calculate the generating cost/kWh at 100% capacity
Solution. Assuming maximum demand equal to the factor.
capacity of the power plant,
Solution. Maximum demand
Average load
Load factor = = 60 MW (= peak load)
Maximum demand
Fixed cost = Interest and depreciation on
Average load capital cost
0.4 =
180
12
\ Average load = 0.4 × 180 = 72 MW =` × 18 × 106 = ` 2.16 × 106
100
Energy generated per annum
Running cost = Annual salaries, wages and
= 72 × 103 × (365 × 24)
taxation
= 630.72 × 106 kWh 6
= ` (1.44 + 0.48) 10
Fixed cost = Interest and depreciation on capital cost
= ` 1.92 × 106
18 At 100% capacity factor :
= × 300 × 106 = ` 54 × 106
100 Rated/installed capacity
Running (operating cost)
= 60 MW
= Cost of fuel oil, salaries and taxation
Average load
= ` 36 × 106 Capacity factor = =1
Rated capacity
Total annual cost
or Average load = Rated capacity = 60 MW
= Fixed cost + operating cost
Average energy produced per annum
= ` (54 + 36) × 106
= 60 × 103 × (365 × 24) kWh
= ` 90 × 106
\ Cost per kWh = 525.6 × 106 kWh
Total plant heat rate
90 ´ 106
= × 100 = 138000 × 525.6 × 106 kJ
630.72 ´ 106
= 14.27 p. per kWh. (Ans.)
 ECONOMICS OF POWER GENERATION 473

Weight of coal required per annum When load, L = 5 MW

138000 ´ 525.6 ´ 106 Input, I5 = 4 × 106 (10 + 8 × 5 + 0.4 × 52)
= tonnes
23000 ´ 1000 = 240 × 106 kJ/h
= 3.15 × 106 tonnes Increase in input required
Cost of fuel = ` 72 × 3.15 × 106 = I5 – I3
= ` 226.8 × 106 = (240 – 150.4) × 106
Total annual cost = ` (2.16 + 1.92 + 226.8) × 106 = 89.6 × 106 kJ/h. (Ans.)
= ` 230.88 × 106 (b) By incremental rate curve :
230.88 ´ 106 When load varies from 3 to 5 MW, the incremental
Generation cost = × 100 rate may be considered to be straight line and the average
525.6 ´ 106
height of area under the curve between 3 MW and 5 MW
= 43.93 p. (Ans.) would be
ECONOMIC LOAD SHARING 3+5
= = 4 MW
2
Example 9.25. An input-output curve of a 10 MW station I = 4 × 106 (10 + 8L + 0.4L2)
is expressed as follows : Increment rate,
I = 4 × 106 (10 + 8L + 0.4L2) dI
where I is in kJ/hour and L is in megawatts. IR = = 4 × 106 (8 + 0.8L)
dL
(i) Without plotting any curve find the load at which \ IR = 4 × 106 (8 + 0.8 × 4) when load
the maximum efficiency occurs. = 4 MW
(ii) Find the increase in input required to increase = 4 × 106 (8 + 3.2) = 4 × 106 × 11.2
station output from 3 to 5 MW by means of the input-output
Hence total increase in input
curve and also by incremental rate curve.
= 4 × 106 × 11.2 (5 – 3)
Solution. (i) Load at which maximum efficiency
occurs : = 89.6 × 106 kJ/h. (Ans.)
I = 4 × 106 (10 + 8L + 0.4L2) This shows that increase in input required to
increase the required output in both cases (a) and (b) is
I 10 FG IJ same. This indicates that the incremental rate curve can be
or = 4 × 106 + 8 + 0.4 L
L L H K taken as straight line for small increase in output.
Output L Example 9.26. The input-output curve of a 50 MW power
Efficiency = =
Input I station is given by :
1 I = 4 × 106 (8 + 8L + 0.4L2) kJ/hour
\ Efficiency, h = ...(i) where I is the input in kJ/hour and L is load in MW.
10 FG IJ
4 ´ 106 + 8 + 0.4 L
L H K (i) Determine the heat input per day to the power
Now the efficiency will be maximum when station if it works for 20 hours at full load and remaining
FG 10 + 8 + 0.4 LIJ is minimum period at no load.
HL K (ii) Also find the saving per kWh of energy produced
if the plant works at full load for all 24 hours generating
d F 10
i.e., G + 8 + 0.4 LIJK = 0
dL H L
the same amount of energy.
Solution. (i) Heat input per day :
10 Total energy generated by the plant during 24 hours
\ – + 0.4 = 0
L2 = 20 × 50 + 4 × 0 = 1000 MWh
10 Input to the plant when the plant is running at full
or L2 = = 25 or L = 5 MW
0.4 load
Hence the load at which the maximum efficiency I50 = 4 × 106 (8 + 8 × 50 + 0.4 × 502) × 20
occurs = 5 MW. (Ans.)
= 4 × 1408 × 20 kJ during 20 hours
(ii) Increase in input :
when the plant was running at full load.
(a) By input output curve :
Input at no load,
When load, L = 3 MW
I0 = 4 × 106 × 8 × 4
Input, I3 = 4 × 106 (10 + 8 × 3 + 0.4 × 32)
= 128 × 106 kJ during 4 hours when the
= 150.4 × 106 kJ/h plant was running at no load.
 474 POWER PLANT ENGINEERING

Total input to the plant during 24 hours 11.5

or, P1 = = 79.3 MW. (Ans.)
= I50 + I0 = 4 × 106 × 1408 × 20 + 128 × 106 0.145
= 106 (5632 × 20 + 128) and, P2 = 180 – 79.3 = 100.7 MW. (Ans.)
= 112768 × 106 kJ/day. (Ans.) (ii) Loss in fuel cost :
(ii) Saving per kWh : If the load is equally shared by both the units
Average heat supplied per kWh generated FG supplying 180 = 90 MW eachIJ , then the increase in cost
112768 ´ 10 6 H 2 K
= = 112768 kJ/kWh of fuel for unit 1
1000 ´ 103
If the same energy is generated within 24 hours, 90

the average load is given by :

1000
=
z
79.3
(0.07 P1 + 24) dP1

2 90
Average load = = 41.67 MW L 0.07 P
=M 1
O
+ 24 P P
24 1
Heat supplied during 24 hours in this case MN 2 PQ 79.3

I50 = 4 × 106 (8 + 8 × 50 + 0.4 × 41.672) × 24 = 0.035 (902 – 79.32) + 24 (90 – 79.3)

= 4 × 106 (8 + 400 + 694.5) × 24 = 63.4 + 256.8 = ` 320.2/hour
= 4 × 106 × 1102.5 × 24 kJ/day Increase in cost of fuel for unit 2
90
= 105840 × 106 kJ/day
Net saving per day
= 112768 × 106 – 105840 × 106
=
z100.7
(0.075 P2 + 22) dP2

2 90

=
LM 0.075P 2
+ 22 P2
OP
= 6928 × 106 kJ/day MN 2 PQ 100.7
\ Saving per kWh
0.075
6928 ´ 106 = (902 – 100.72) + 22 (90 – 100.7)
= = 6928 kJ/kWh. (Ans.) 2
1000 ´ 103 = – 76.5 – 235.4 = ` – 311.9/hour
Example 9.27. The incremental fuel costs for two generat- This indicates that the cost of fuel for unit 2
ing units 1 and 2 of a power plant are given by the follow- decreases.
ing equations :
Net increase in cost (or loss in fuel cost) due to
dF1 departure from economic distribution of load
= 0.07 P1 + 24
dP1 = 320.2 – 311.9 = ` 8.3/hour. (Ans.)
dF2 Example 9.28. Two steam turbines each of 30 MW capacity
= 0.075 P2 + 22
dP2 take a load 45 MW. The steam consumption rates in kg per
where F is fuel cost in rupees per hour and P is power output hour for both turbines are given by the following equations :
in MW. Determine : S1 = 2400 + 12L1 – 0.00012 L12
(i) The economic loading of the two units when the S2 = 1200 + 8.4L2 – 0.00006 L22
total load supplied by the power plants is 180 MW. L represents the load in kW and S represents the steam
(ii) The loss in fuel cost per hour if the load is equally consumption per hour. Find the most economical loading
shared by both units. when the load taken by both units is 45 MW.
Solution. (i) Economic loading of two units : Solution. L1 + L2 = 45 MW = 45000 kW ...(i)
P1 + P2 = 180 ...(Given) ...(i) For the most economical loading, the required
The condition required for economic loading is given condition is
by : dS1 dS2
=
dF1 dF2 dL1 dL2
=
dP1 dP2 \ 12 – 2 × 0.00012 L1 = 8.4 – 2 × 0.00006 L2
\ 0.07 P1 + 24 = 0.075 P2 + 22 ...(ii) 12 – 0.00024 L1 = 8.4 – 0.00012 L2 ...(ii)
Substituting the value of P2 (= 180 – P1) from (i) in Substituting the value of L2 (= 45000 – L1) from (i)
(ii), we get in (ii), we get
0.07 P1 + 24 = 0.075 (180 – P1) + 22 12 – 0.00024 L1 = 8.4 – 0.00012 (45000 – L1)
or 0.07 P1 + 24 = 13.5 – 0.075 P1 + 22 12 – 0.00024 L1 = 8.4 – 5.4 + 0.00012 L1
or 0.145 P1 = 11.5 0.00036 L1 = 9
 ECONOMICS OF POWER GENERATION 475

9 Refrigerator load : 2 kWh daily

\ L1 = = 25000 kW
0.00036 Miscellaneous load : 2 kW for 2 hours daily
or 25 MW. (Ans.) Find the monthly bill at the following tariff :
and L2 = 45000 – 25000 = 20000 kW First 20 units ` 0.50/kWh
or 20 MW. (Ans.) Next 30 units ` 0.40/kWh
Remaining units ` 0.30/kWh
TARIFF
Constant charge ` 2.50 per month
Example 9.29. Two electrical units used for same purpose Discount for prompt payment = 5 per cent.
are compared for their economical working : Solution. Total energy consumption in 30 days
(i) Cost of Unit-1 is ` 6000 and it takes 120 kW. = (6 × 40 × 4 × 30 + 6 × 100 × 6 × 30)
(ii) Cost of Unit-2 is ` 16800 and it takes 72 kW. 1
Each of them has a useful life of 40000 hours. × + 2 × 30 + 2 × 2 × 30
1000
Which unit will prove economical if the energy is 1
charged at ` 96 per kW of maximum demand per year and = (28800 + 108000) × + 60 + 120
1000
6 p. per kWh ? = 316.8 kWh per month
Assume both units run at full load. The monthly bill
Solution. (i) Unit-1 : = ` [(20 × 0.5 + 30 × 0.4 + 266.8 × 0.3) + 2.5]
6000 = ` [(10 + 12 + 80.04) + 2.5] = ` 104.54
Capital cost per hour = = ` 0.15
40000
LM∵ Remaining units per month OP
Maximum demand = 120 kW
N = 316.8 - 20 - 30 = 266.8 Q
Charge for maximum demand per hour
Net monthly bill if the payment is made promptly
120 ´ 96
= = ` 1.315 = 104.54 × 0.9 = ` 94.08. (Ans.)
(365 ´ 24)
Example 9.31. An industrial undertaking has a connected
Energy charge per hour = Maximum demand × one
load of 220 kW. The maximum demand is 180 kW. On an
hour × charge per kWh
average each machine works for 60% time. Find the yearly
6 expenditure on electricity if the tariff is :
= 120 × 1 × = ` 7.2
100 ` 1200 + ` 120 per kW of maximum demand per
\ Total charges per hour for operation of Unit-1 year + ` 0.15 per kWh.
= 0.15 + 1.135 + 7.2 = ` 8.485 Solution. Energy consumption in one year
(ii) Unit-2 : = 180 × 0.6 × (365 × 24) = 946080 kWh
Capital cost per hour Total electricity bill
16800 = ` (1200 + 120 × 180 + 0.15 × 946080)
= = ` 0.42.
40000 = ` 164712. (Ans.)
Charge for maximum demand per hour
Example 9.32. A Hopkinson demand rate is quoted as
72 ´ 96
= = ` 0.789 follows :
365 ´ 24
Demand rates :
Energy charge per hour
First 1 kW of maximum demand
6
= 72 × 1 × = ` 4.32 = ` 6/kW/month
100
Total charges per hour for the operation of Unit-2 Next 4 kW of maximum demand
= 0.42 + 0.789 + 4.32 = ` 5.529 = ` 5/kW/month
The charges of operation for the Unit-2 per hour Excess 5 kW of maximum demand
are less than the charges of operation for the Unit-1, = ` 4/kW/month
therefore Unit-2 is more economical in this case. (Ans.) Energy rates :
Example 9.30. The monthly electricity consumption of a First 50 kWh = 7 paise/kWh
residence can be approximated as under : Next 50 kWh = 5 paise/kWh
Light load : 6 tube lights 40 watts each working Next 200 kWh = 4 paise/kWh
for 4 hours daily Next 400 kWh = 3 paise/kWh
Fan load : 6 fans 100 watts each working for Excess over 700 kWh = 2 paise/kWh.
6 hours daily
 476 POWER PLANT ENGINEERING

Determine : (i) The monthly bill for a total Average load

consumption of 2000 kWh and a maximum demand of Solution. Load factor =
Maximum demand
15 kW. Also find out the unit energy cost.
\ Average load
(ii) Lowest possible bill for a month and a
= Load factor × maximum demand
corresponding unit energy cost.
= 0.25 × 700 = 175 kW
Solution. (i) Monthly bill and energy cost :
Energy consumed per year
Demand charges per month
= ` (1 × 6 + 4 × 5 + 10 × 4) = ` 66 = 175 × (365 × 24) = 1.533 × 106 kWh.
Energy charge = ` [50 × 7 + 50 × 5 + 200 × 4 (i) Public supply :
1 Maximum demand charges per year
+ 400 × 3 + 1300 × 2] ×
100 = 48 × 700 = ` 33600
= ` (350 + 250 + 800 + 1200
Energy charge per year
1
+ 2600) × = ` 52 2.4
100 = × 1.533 × 106 = ` 36792
\ Monthly bill = 66 + 52 = ` 118. (Ans.) 100
Average unit energy cost Interest and depreciation
118 10
= × 100 = × 84000 = ` 8400
2000 100
= 5.9 paise/kWh. (Ans.) Total cost = ` (33600 + 36792 + 8400) = ` 78792
(ii) Lowest possible bill : \ Energy cost per kWh
The lowest possible bill will occur when average load 78792
= × 100 = 5.14 p.
= Maximum load or at 100% load factor 1.533 ´ 106
\ Maximum load (ii) Private oil engine generating station :
2000 Fuel consumption
= Average load = = 2.77 kW
30 ´ 24 3 ´ 1.533 ´ 106
\ Demand charges = = 4599 kN
1000
= ` (6 + 1.77 × 5) = ` 14.85 Cost of fuel = 4599 × 8.4 = ` 38631
Energy charges will be same Cost of wages and maintenance
= ` 52
\ Minimum monthly bill =
FG 0.48 + 0.36 IJ × 1.533 × 10 6 = ` 12877
= 14.85 + 52 = ` 66.85. (Ans.)
H 100 K
Interest and depreciation
Unity energy cost for this condition
15
66.85 = × 300000 = ` 45000
= × 100 = 3.34 paise/kWh. (Ans.) 100
2000 Total cost
TARIFF AND COST ANALYSIS = ` (38631 + 12877 + 45000) = ` 96508
Energy cost per kWh
Example 9.33. A new factory requires a maximum 96508
demand of 700 kW and load factor of 25%. The following = × 100 = 6.29 p.
1533
. ´ 106
two suppliers are available : As the energy cost per kWh for oil engine is less than
(i) Public supply tariff is ` 48 per kW of maximum the public supply, the oil engine generation is more
demand plus 2.4 p. per kWh. preferable. (Ans.)
Capital cost = ` 84000
Example 9.34. A load having a maximum demand of
Interest and depreciation = 10 per cent
100 MW and a load factor of 0.4 may be supplied by one of
(ii) Private oil engine generating station : the following schemes :
Capital cost = ` 300000 (i) A steam station capable of supplying the whole
Fuel consumption = 3 N/kWh load.
Cost of fuel = ` 8.4 per kN (ii) A steam station in conjunction with pump storage
Wages = 0.48 p/kWh plant which is capable of supplying 130 × 106 kWh energy
Maintenance cost = 0.36 p/kWh per year with a maximum output of 40 MW.
Interest and depreciation = 15 per cent. Find out the cost of energy per unit in each of the
Find which supply will be more economical ? two cases mentioned above.
 ECONOMICS OF POWER GENERATION 477

Use the following data : = 350.4 × 106 – 130 × 106

Capital cost of steam station = 220.4 × 106 kWh
= ` 2000/kW of installed capacity Operating cost of the steam station
Capital cost of pump storage plant 6
= × 220.4 × 106 = ` 13.22 × 106
= ` 1300/kW of installed capacity 100
Operating cost of steam plant Total cost per year
= 6 p./kWh = ` (20.64 × 106 + 0.65 × 106 + 13.22 × 106)
Operating cost of pump storage plant = ` 34.51 × 106
= 0.5 p./kWh Total cost per unit
Interest and depreciation together on the capital 34.51 ´ 106
invested should be taken as 12 per cent. Assume that no = × 100
350.4 ´ 106
space capacity is required. = 9.85 p/kWh. (Ans.)
Solution. (i) Steam station :
Capital cost = 100 × 103 × 2000 = ` 200 × 106 Note. If the above example is repeated with a load factor
Interest and depreciation of 0.7 it will be observed from the results that the cost of
generation becomes less with higher load factor irrespective
12
= × 200 × 106 = ` 24 × 106 of the type of the plant.
100
Average load Example 9.35. The following data relate to a 2000 kW diesel
= Load factor × maximum demand power station :
= 0.4 × 100 × 103 = 40000 kW The peak load on the plant
Energy supplied per year = 1500 kW
= Average load × (365 × 24) Load factor = 0.4
= 40000 × 365 × 24 = 350.4 × 106 kWh Capital cost per kW installed
\ Interest and depreciation charges per unit of = ` 1200
energy Annual costs = 15 per cent of capital
6
24 ´ 10 Annual operating costs = ` 50000
= × 100 = 6.85 p/kWh
350.4 ´ 106 Annual maintenance costs :
\ Total cost per unit (i) Fixed = ` 9000
= 6 + 6.85 = 12.85 p/kWh. (Ans.) (ii) Variable = ` 18000
(ii) Steam station in conjunction with pump- Cost of fuel = ` 0.45 per kg
storage plant : Cost of lubricating oil = ` 1.3 per kg
The load supplied by the steam plant C.V. of fuel = 41800 kJ/kg
= 100 – 40 = 60 MW
Consumption of fuel = 0.45 kg/kWh
\ Capital cost of steam plant
Consumption of lubricating oil
= 60 × 1000 × 2000 = ` 120 × 106
= 0.002 kg/kWh
Capital cost of pump storage plant
= 40 × 1000 × 1300 = ` 52 × 106 Determine the following :
\ Total capital cost of combined station (i) The annual energy generated.
= 120 × 106 + 52 × 106 = ` 172 × 106 (ii) The cost of generation per kWh.
Interest and depreciation charges on capital Solution. Capital cost of the plant
investment = 2000 × 1200 = ` 2.4 × 106 per year
12 Interest on capital
= × 172 × 106 = ` 20.64 × 106
100 15
\ Operating cost of pump storage plant = × 2.4 × 106
100
0.5 = ` 0.36 × 106 per year.
= × 130 × 106 = ` 0.65 × 106
100 (i) Annual energy generated
The energy units supplied by steam station
= Load factor × maximum demand × (365 × 24)
= Total units required – energy units
= 0.4 × 1500 × 365 × 24 = 5.256 × 106 kWh. (Ans.)
supplied by pump storage plant
 478 POWER PLANT ENGINEERING

(ii) Cost of generation : Energy loss in transmission

Fuel consumption = 0.45 × 5.256 × 106 = 10 per cent
= 2.365 × 106 kg per year Diversity factor = 1.5
Cost of fuel = ` 0.45 × 2.365 × 106 Load factor = 0.75
= ` 1.064 × 106 per year Maximum demand
Lubricant consumption = 0.002 × 5.256 × 106 = 12 MW
= 10512 kg per year (i) Devise a two-part tariff.
Cost of lubricating oil = 1.3 × 10512 (ii) Find the average cost per kWh.
= ` 13665 per year Solution. (i) Two-part tariff :
Total fixed cost = Interest + maintenance Average load
Load factor =
(fixed) Maximum demand
= 0.36 × 106 + 9000
\ Average load
= ` 369000 per year
= Load factor × maximum demand
Total running or variable costs
= 0.75 × 12 × 103 = 9000 kW
= Fuel cost + lubricant cost
Energy generated per year
+ maintenance (running)
= 9000 × (365 × 24) = 78.84 × 106 kWh
+ annual operating costs
Cost of the plant
= 1.064 × 106 + 13665 + 18000 + 50000
= 15 × 103 × 1500 = ` 22.5 × 106
= ` 1145665 per year
Interest, insurance and depreciation charges of the
Total cost = Fixed cost + running cost plant
= 369000 + 1145665 = ` 1514665
10
Cost of generation = × 22.5 × 106 = ` 2.25 × 106
100
1514665
= × 100 Interest, insurance and depreciation charges of
5.256 ´ 106 primary and secondary equipments
= 28.8 paise/kWh. (Ans.)
5
Example 9.36. The annual costs of operating a 15 MW = × 20 × 106 = ` 1.0 × 106
100
thermal plant are given below :
Total fixed cost = Insurance, interest and
Capital cost of plant
depreciation costs + dividend to stock-holders
= ` 1500/kW
= ` (2.25 × 106 + 1.5 × 106) = ` 3.75 × 106
Interest, insurance and depreciation
= 10 per cent of plant cost Sum of individual maximum demand
Capital cost of primary and secondary distribution = Maximum demand × diversity factor
= ` 20 × 106 = 12 × 103 × 1.5 = 18000 kW
Interest, insurance and depreciation on the capital \ Fixed charges per kW
cost of primary and secondary distribution 3.75 ´ 106
= = ` 208.3.
= 5% the capital cost 18000
Plant maintenance cost Total variable charges
= ` 100 × 103 per year = All maintenance costs
Maintenance cost of primary and secondary + salaries and wages + fuel cost
equipment = (100 × 103 + 2.2 × 105) + 6.5 × 105+ 40
= ` 2.2 × 105 per year × 104 × 9
Salaries and wages 5 5
= (1 × 10 + 2.2 × 10 ) + 6.5 × 10 5
= ` 6.5 × 105 per year + 36 × 105
Consumption of coal 5
= ` 45.7 × 10 or ` 4.57 × 10 6
= 40 × 104 kN per year Energy transmitted
Cost of coal = ` 9 per kN = Energy generated × transmission efficiency
Dividend to stockholders = 78.84 × 106
= ` 1.5 × 106 per year
×
FG 100 - energy loss in transmission IJ
H 100 K
 ECONOMICS OF POWER GENERATION 479

90 Plant annual load factor

= 78.84 × 106 × = 70.956 × 106 kWh = 0.72
100
\ Charges for energy consumption Cost of the plant = ` 800/kW installed capacity
Interest, insurance and depreciation
4.57 ´ 106
= × 100 = 6.44 paise/kWh. = 10 per cent of the capital cost
70.956 ´ 106 Cost of transmission and distribution system
\ Two-part tariff = ` 350 × 103
= ` 208.3/kW + 6.44 paise/kWh. (Ans.) Interest, depreciation on distribution system
(ii) Average cost per kWh : = 5 per cent
Total charges = Fixed charges + variable charges Operating cost = ` 350 × 103 per year
= 3.75 × 106 + 4.57 × 106 Cost of coal = ` 6 per kN
= ` 8.32 × 106 Plant maintenance cost
Average cost of supply = ` 30000/year (fixed)
= ` 40000/year (running)
8.32 ´ 106
= × 100 Coal used = 250000 kN/year
70.956 ´ 106
= 11.72 paise/kWh. (Ans.) Assume transmission and distribution costs are to
be charged to generation
Example 9.37. A 10 MW thermal power plant has the
following data : (i) Devise a two-part tariff.
Peak load = 8 MW (ii) Average cost of generation in paise/kWh.

Solution. (i) Two-part tariff :

S. No. Items Fixed cost per year Running cost per year
(in ` ) (in ` )

10
1. Interest, depreciation etc. of the plant × 10000 × 800
100
= ` 800 × 103 –
5
2. Interest, depreciation etc. of the × 350 × 103
100
transmission and distribution = 17.5 × 103 –
3. Annual cost of coal – 250000 × 6
= 1500 × 103
4. Operating cost – = 350 × 103
5. Plant maintenance cost = 30 × 103 = 40 × 103

Total cost 847.5 × 103 1890 × 103

\ Grand total cost = ` 105.9/kW + paise 3.74/kWh. (Ans.)

= Fixed cost + running cost (ii) Average cost generation in paise/kWh :
= 847.5 × 103 + 1890 × 103 Average generation cost
= ` 2737.5 × 103 Grand total cost
=
Energy generated/year Energy generated
= Average load × (365 × 24) 2737.5 ´ 103
= (Peak load × load factor) × (365 × 24) = × 100
50.46 ´ 106
= (8 × 103 × 0.72) × (365 × 24) = 5.42 paise/kWh. (Ans.)
= 50.46 × 106 kWh Example 9.38. Determine the load factor at which the cost
\ Two-part tariff of supplying a unit of electricity is same in Diesel station as
Fixed cost Running cost in a steam station if the respective annual fixed and running
= + charges are given below :
Maximum load Energy generated
Diesel : ` (40/kW + 0.06/kWh)
847.5 ´ 103 1890 ´ 103
= + × 100 Steam : ` (160/kW + 0.015/kWh).
8 ´ 103 50.46 ´ 106
 480 POWER PLANT ENGINEERING

Solution. Let P = Maximum load in kW, and \ Energy cost

x = Load factor (same for both the stations).
=
LMFG 25 ´ 0.7355 ´ (365 ´ 24) ´ 30 ´ 1 IJ
Then, Average load NH 100 0.9 K
=P×x
Cost of diesel station, F 1 70 1 I O 12
+ G (25 ´ 0.7355) ´ ´ (365 ´ 24) ´ ´ J´
Cdiesel = 40 P + 0.06 × P × x × (365 × 24) H 2 100 0.85 K PQ 100
Cost of steam station, 12
= (53691.5 + 66324.8) ×
Csteam = 160 P + 0.015 × P × x × (365 × 24) 100
= ` 14402/year
As given in the problem,
\ Total cost of motor A
Unit energy cost (diesel station) = Unit energy
= 220 + 250 + 400 + 14402 = ` 15272/year.
cost (steam station)
Motor B :
40 P + 0.06 Px ´ (365 ´ 24)
\ 12
Px ´ (365 ´ 24) Salvage value = × 3500 = ` 420
100
160 P + 0.015 Px ´ (365 ´ 24) 3500 - 420
= Depreciation = = ` 154
Px ´ (365 ´ 24) 20
\ 40 P + 0.06 Px × 8760 = 160 P + 0.015 Px × 8760 5
Interest = × 3500 = ` 175
or 40 P + 525.6 Px = 160 P + 131.4 Px 100
or 120 P = 394.2 Px Maintenance = ` 200
120 Energy cost
or x= = 0.3
394.2
=
LMFG 25 ´ 0.7355 ´ (365 ´ 24) ´ 30 ´ 1 IJ
i.e., Load factor = 0.3. (Ans.) NH 100 0.86 K
Example 9.39. A motor of 25 H.P. connected to a condensate
F 1 70 1 I O 12
pump has been burnt beyond economical repairs. Two + G 25 ´ 0.7355 ´ ´ (365 ´ 24) ´ ´ JP ´
alternatives have been proposed to replace it by : H 2 100 0.8 K Q 100
12
Cost h at full load h at half load = (56188.8 + 70470) × = ` 15199
100
Motor A : ` 5000 90% 85% Total cost of motor B
= 154 + 175 + 200 + 15199 = ` 15728/year.
Motor B : ` 3500 86% 80%
Hence motor A is economical since its annual cost is
The life of each motor is 20 years and its salvage less than motor B.
value is 12 per cent of the initial cost. The rate of interest is Example 9.40. The following proposals are under
5 per cent annually. The motor operates at full load for 30% consideration for an industry which has a maximum
of time and at half load for the remaining period. The demand of 45 MW and a load factor of 0.45 :
annual maintenance cost of motor A is ` 400 and that of
(i) A steam plant having an initial cost of ` 1200/kW
motor B is ` 200. The energy rate is 12 paise/kWh.
and maintenance cost of 2.4 paise/kWh. The coal of C.V. of
Which motor will be economical ? 2550 kJ/N is used. The overall efficiency of the plant is
Solution. Motor A : 24 per cent.
12 (ii) An hydro-plant having a capital cost of
Salvage value = × 5000 = ` 600
100 ` 3600/kW and a running cost of 0.6 paise/kWh.
5000 - 600 Assuming interest and depreciation rate of 10 per
Depreciation = = ` 220/year
20 cent for steam plant and 8 per cent for hydro-plant,
5 determine the price of coal above which steam station is
Interest = × 5000 = ` 250/year uneconomical.
100
Maintenance = ` 400 Solution. Energy required per year
Energy given to motor = Peak load × load factor × (365 × 24)
Load on motor ´ time in hours = 45 × 103 × 0.45 × (365 × 24)
=
Efficiency of the motor = 177.39 × 106 kWh/year
 ECONOMICS OF POWER GENERATION 481

(i) Steam plant : High voltage : ` 50/kW per year + paise 4/kWh
Interest and depreciation Low voltage : ` 55/kW per year + paise 5/kWh
10 In order to have high voltage supply, consumer has
= × (45 × 103) × 1200 = ` 5.4 × 106
100 to install his own transformer which costs ` 110/kW. The
Maintenance cost losses in the transformer are 4 per cent of full load.
Determine the number of working hours per week above
2.4
= × 177.39 × 106 = ` 4.257 × 106 which the high voltage supply will be economical.
100
Assume : interest and depreciation 12 per cent of
Let Wcoal = Weight of coal in kN used/year, and
capital, working weeks per year 50 and load of consumer
x = Cost of coal in rupees per kN as 1.5 MW.
\ Wcoal × 103 × C.V. × hoverall Solution. Consumer load
= 177.39 × 106 × 3.6 × 103 = 1.5 MW = 1500 kW
(∵ 1 kWh = 3.6 × 103 kJ) Required rating of transformer
6
177.39 ´ 10 ´ (3.6 ´ 10 ) 3 1500
or Wcoal = = = 1562 kW
103 ´ 2550 ´ 0.24 (1 - 0.4)
= 1.043 × 106 kN/year Cost of the transformer to the consumer
Now, total cost of steam plant = 1562 × 110 = ` 171820
= Interest + maintenance cost + fuel cost Annual interest and depreciation
= 5.4 × 106 + 4.257 × 106 + 1.043 × 106 × x 12
= × 171820 = ` 20618
...(1) 100
Let the number of hours for which power is required
(ii) Hydel plant :
by the consumer = x hours/week
Interest and depreciation
\ Number of hours for which power is used during
8 the year = 50x hours
= 45 × 103 × 3600 × = ` 12.96 × 106
100 (i) Number of units consumed from low voltage side
Running cost if the load is connected to low voltage
0.6 = 1500 × 50x = 75000x kWh/year
= × 177.39 × 106 = ` 1.064 × 106
100 (ii) Number of units consumed from high voltage
Total cost of hydel plant side if the load is connected to high voltage
= 12.96 × 106 + 1.064 × 106 = 1562 × 50x = 78100x kWh/year
= ` 14.024 × 106 ...(2) Total cost from low voltage supply in rupees
The steam and hydel station will be equally 5
economical if the total cost/year remains same. = 1500 × 55 + 75000x ×
100
\ Equating the values of (1) and (2), we get = 82500 + 3750x ...(1)
5.4 × 106 + 4.257 × 106 + 1.043 × 106 × x Total cost from high voltage supply in rupees

= 14.024 × 106 4
= 1562 × 50 + 78100x × + 20618
100
or 5.4 + 4.257 + 1.043 x
= 98718 + 3124x ...(2)
= 14.024 (Dividing both sides by 106)
It both the systems cost the same to the consumer,
14.024 - 5.4 - 4.257 then equating (1) and (2), we get
\ x= = ` 4.19 per kN
1.043 82500 + 3750x = 98718 + 3124x
Hence price coal above which steam station is 98718 - 82500 16218
uneconomical = ` 4.19 per kN. (Ans.) i.e., x= = = 25.9 hours.
(3750 - 3124) 626
Example 9.41. An industrial consumer has a choice Hence the number of working hours above which the
between low and high voltage supply available at the high voltage supply will be economical
following rates :
= 25.9 hours. (Ans.)
 482 POWER PLANT ENGINEERING

ADDITIONAL /TYPICAL EXAMPLES

Example 9.42. A diesel electric station has 4-generating Cost of lubricating oil
sets, each of 500 kW and 1 of 400 kW capacity. = (6.57 × 106 × 0.0024) × 45
The other data is given below : = ` 0.71 × 106
Maximum demand 1500 kW
Total variable cost per year
Load factor 0.5
Capital cost ` 10000/kW = (23.65 + 0.71) × 106 = ` 24.36 × 106
Annual cost (interest + depreciation Total cost = Fixed cost + variable cost
+ insurances and taxes) 16% of capital cost = 3.085 × 106 + 24.36 × 106
Annual maintenance cost ` 45000 = ` 27.44 × 106
Operation cost ` 8000 \ Cost per kWh generated
Fuel used 0.45 kg/kWh
Total cost
Cost of fuel ` 8/kg =
Energy generated per year
Lubricating oil used 0.0024 kg/kWh
Cost of lubricating oil ` 45/kg 27.44 ´ 106
= - ` 4.18. (Ans.)
~
Calorific value of fuel used 41000 kJ/kg 6.57 ´ 106
Generator efficiency 90% (iv) Overall efficiency of the plant, hoverall :
Determine the following :
Output 6.57 ´ 106 ´ 3600 (kJ)
(i) The rating of diesel engine, hoverall = =
(ii) Energy produced per year, Input 6.57 ´ 106 ´ 0.45 ´ 41000 (kJ)
(iii) Cost of generation, ` /kWh, and = 0.195 or 19.5%. (Ans.)
(iv) Overall efficiency of the plant. (N.U.) Example 9.43. A load curve of a factory follows a parabola
and it works for 8 hours a day from 10 A.M. to 6 P.M. The
Solution. (i) The rating of diesel engine :
Rating of first 3-sets maximum and minimum loads of the factory are 3 MW
and 1 MW. The capacity of the diesel power plant supplying
500
= = 555 kW. (Ans.) the power to the factory is 2 MW. Determine the following :
0.9
Rating of last set (i) Load factor and capacity factor of the plant
supplying power to the factory.
400
= = 445 kW. (Ans.) (ii) Energy consumption of the factory per month
0.9 assuming it works for 26 days per month and 8 hours per
(ii) Energy produced per year : day.
Average demand (iii) Electrical charges to be paid by the factory if the
= Maximum demand × load factor charges are ` 60/kW for maximum load during a day and
= 1500 × 0.5 = 750 kW ` 2.75/kWh.
\ Energy produced per year
The time at 6 A.M. may be taken as zero. (M.U.)
= 750 × 8760 = 6.57 × 106 kWh. (Ans.)
Solution. Given : Working hours per day = 8 (10 A.M. to
(iii) Cost of generation, ` /kWh :
Fixed cost per year : 6 P.M.) ; Maximum load = 3 MW ; Minimum load =
Capital cost = (3 × 500 + 1 × 400) × 10000 1 MW ; Capacity of diesel power plant = 2 MW ; Tariff :
= ` 1.9 × 107 ` 60/kW (maximum load) ; ` 2.75/kWh.

16 The load curve is shown in Fig. 9.18.

Annual fixed cost = × 1.9 × 107 = ` 0.304 × 107 The load curve is given by :
100
Maintenance cost = ` 45000 = ` 0.0045 × 107 y2 = ax,
Total fixed cost = ` (0.304 + 0.0045) × 107 where x and y represent hours and MW respectively.
= ` 0.3085 × 107 The boundary conditions are :
Variable cost per year : At x = 0, y = 0 ; At x = 4, y = 1
Fuel cost = (6.57 × 106 × 0.45) × 8 1
= ` 23.65 × 106 \ 1 = a × 4 or a =
4
 ECONOMICS OF POWER GENERATION 483

y (MW) Example 9.44. The daily load curve for a power plant is
given by the following equation :
L = 350 + 10t – t2
2
y = ax where t is time in hours from 0 to 24 hours and L is in MW
3 calculate :
(i) Value of maximum load and when it occurs, and
1
(ii) Load factor of the plant.
x
0 6 A.M. 10 A.M. 6 P.M. Draw load curve and load duration curve. (P.U.)
(hours)
Solution. Equation of the load curve,
L = 350 + 10t – t2 ...(Given)
4 hours 8 hours
(i) Value of maximum load and when it
Fig. 9.18 occurs :
The condition for finding the value of maximum load
x x dL
\ y2 = or y =
(load curve) is =0
4 2 dt
The above load curve also fulfills the another
d
condition which is : \ (350 + 10t – t2) = 0 or 10 – 2t = 0
dt
At x = 12, y = 3 \ t = 5 hours.
12
2
Thus, the maximum load occurs at 5th hour during
\ e j
3 =
4
\ 3=3
the day. (Ans.)
The average load of the factory on the diesel power \ Lmax = 350 + 10 × 5 – 52 = 375 MW. (Ans.)
plant is given by :
(ii) Load factor of the plant :
1 12 1 12 x
Lav =
8 z 4
y . dx =
8 z4 2
dx The average load on the plant is given by

1 24 1 24

=
1 2
16 3
LM
( x)1.5
N
OP
Q
12

4
=
1
24
[(12)1.5 – (4)1.5]
Lav =
24 z
0
L . dt =
24 z
0
(350 + 10t - t 2 ) dt

24
= 1.4 MW 1 LM t 2 t3 OP
= 350t + 10 ´ -
(i) Load factor and capacity factor : 24 MN 2 3 PQ 0
Lav 1.4
Load factor = = = 0.808. (Ans.) 2
Lmax 1 L (24) 3 OP
3
= M350 ´ 24 + 10 ´ (24)2
24 MN
-
3 PQ
Lmax 3
Capacity factor = =
Plant capacity 2 = 278 MW
= 0.866. (Ans.) Lav 278
\ Load factor = = = 0.7413. (Ans.)
(ii) Energy consumption per month : Lmax 375
Energy consumption per month, Load curve and load duration curve :
E = (Lav × 8) × 26 The ‘load curve is’ the representation of load with
= (1.4 × 8 × 1000) × 26 respect to time.
= 291200 kWh The ‘load duration curve’ is the representation of
load with respect to time in descending order.
(iii) Electrical charges to be paid by the factory :
In order to draw these curves, we need to calculate
Electrical charges to be paid by the factory
the values of L when t = 0, 1, 2, 3, .... . 24 hours and these
= Lmax × 60 + E × 2.75 values are tabulated below :
= 3 × 60 + 291200 × 2.75 (Eqn. of the load curve L = 350 + 10t – t2), At
~
t - 0, L = 350 MW
= ` 800904. (Ans.)
484 POWER PLANT ENGINEERING

t (h) L (MW) t (h) L (MW) From the above data the load curve and load
duration curve are drawn as shown in Fig. 9.19 (a) and
1 359 13 311 (b) respectively.
2 366 14 294
3 371 15 275 375
375
4 374 16 254
5 375 17 231
6 374 18 206

L
7 371 19 179 14 14
8 366 20 150
0 456 12 18 24 0 6 12 18 24
9 359 21 119 t t
10 350 22 86 (a) Load curve. (b) Load duration curve.
11 339 23 51 Fig. 9.19
12 326 24 14

HIGHLIGHTS

1. Types of loads : (i) Residential load, (ii) Commercial a, b, c, d = constants.

load, (iii) Industrial load, (iv) Municipal load, (v) Irrigation 7. For minimum combined input to carry a given combined
load, and (vi) Traction load. output, the slopes of the input-output curves for each unit
2. A load curve is a graphic record showing the power must be equal. If there are n units supplying a constant
demands for every instant during a certain time interval. load, then the required condition for the minimum input
The area under the load curve represents the energy or maximum system efficiency is
generated in the period considered. dI1 dI dI dI
3. The cost of a power system includes the following : = 2 = 3 = ...... n .
dL1 dL2 dL3 dLn
A. Capital cost or fixed cost :
(i) Initial cost (ii) Interest 8. The general tariff form is given by :
(iii) Depreciation cost (iv) Taxes z = a.x + b.y + c
(v) Insurance where, z = Total amount of bill for the period considered.
B. Operational cost : x = Maximum demand in kW.
(i) Fuel cost (ii) Operating labour cost y = Energy consumed in kWh during the period
(iii) Maintenance cost (iv) Supplies considered.
(v) Supervision (vi) Operating taxes. a = Rate per kW of maximum demand.
4. The following methods are used to calculate the
b = Energy rate per kWh.
depreciation cost :
(i) Straight line method. (ii) Percentage method. c = Constant amount charged to the consumer
(iii) Sinking fund method.(iv) Unit method. during each billing period. This charge is
independent of demand or total energy
5. The economics of power plant is greatly influenced by :
because a consumer that remains connected
(i) Load factor (ii) Demand factor
to the line incurs expenses even if he does
(iii) Utilisation factor. not use energy.
6. The performance of a plant can be precisely represented
9. Various types of tariff are :
by the input-output curve from the tests conducted on
individual power plant. In general input-output may be (i) Flat demand rate
represented as follows : (ii) Straight meter rate
I = a + bL + cL2 + dL3 (iii) Block meter rate
where I = input (in millions of kcal/h or kJ/h in case of (iv) Hopkinson demand rate (Two-part tariff)
thermal plants and m3/s of water in case
of hydro-plants) (v) Doherty rate (Three-part tariff)
L = output (in MW or kW) (vi) Wright demand rate.