EE2092

ECONOMIC COMPARISON OF DIFFERENT

POWER SYSTEMS

Name: W.H.K.P. NANAYAKKARA

Admission No: 090346V

Group: 09

Date of Submission: 10/11/2010

P ROBLEM 1

a) Total annual energy requirement = 100000 x 0.3 x 24 x 365 kWh

= 2.68 x 108 kWh
b) Comparison of overall cost per kWh.

STEAM STATION CONJUNCTION WITH HYDRO STATION

Maximum output of the plants

Hydro = 40 MW

Steam = 100 x 1.25 – 40 = 85 MW

Annual interest & depreciation on capital investment

Hydro = 40000 x 5000 x 0.2 = Rs. 30 000 000.00

Steam = 85000 x 2500 x 0.2 = Rs. 42 500 000.00

Annual operating cost

Hydro = 0.09 x 100 x 106 = Rs. 9 000 000.00

Steam = 0.18 x (268 x 106 - 100 x 106) = Rs. 29 304 000.00

Annual transmission cost

Hydro = 0.4 x 100 x 106 = Rs. 40 000 000.00

150804000
Total per unit cost = = 𝑅𝑠. 0.57
2.68×10 8
STEM, HYDRO COAL PLANTS INDIVIDUALLY
Calculation of values below are in a similar to the calculation above.

Steam Hydro Coal

Annual Energy production 2.63 x 108 2.63 x 108 2.63 x 108
Total Capacity 125000 125000 125000
Interest & depreciation per unit 0.24 0.36 0.31
Operating cost per unit 0.18 0.09 0.12
Transmission cost per unit 0 0.4 0.4
Cost per kWh 0.42 0.85 0.83

COST VARIATION WITH LOAD FACTOR

Load factor % Steam (Rs.) Hydro (Rs.) Coal (Rs.) Steam + Hydro (Rs.)
10 0.89 1.56 1.46 0.64
20 0.54 1.03 0.99 0.62
30 0.42 0.85 0.83 0.57
40 0.36 0.76 0.76 0.55
50 0.32 0.70 0.71 0.54
 1.80

1.60

1.40

1.20

1.00
Cost per unit (Rs.)

0.80

0.60

0.40

0.20

0.00
0 10 20 30 40 50 60
Load factor %

Steam Hydro Coal Steam+hydro

P ROBLEM 2

ELECTRIFICATION WITH SMALL HYDRO POWER UNIT

100
Total energy required per annum = 0.15 x 5 x 365 x 200 x 80

= 68437.5 kWh

1 1
Annuity factor = 1−
𝑟 1+𝑟 𝑛

= 4.8696

𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡
Per unit Cost = 𝑁𝑜 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠 ×𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑓𝑎𝑐𝑡𝑜𝑟

18000
= 4.8696 ×68437 .5

= Rs. 5.401

SUPPLY OF GRID ELECTRICITY FOR ISOLATED VILLAGE

Total cost = 10 x 600000 + 400000 x 2 + 500000

= Rs. 7300000

Total no of units = 150 x 50 x12

= 90000 kWh

𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡
Per unit Cost =
𝑁𝑜 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠 ×𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑓𝑎𝑐𝑡𝑜𝑟

7300000
= 4.8696 ×90000

= Rs. 16.66
DISCUSSION

Power plants consist of specific life span. Therefore when they are worn off the value lost
should be acquired from the customer. This acquisition is done linearly throughout the whole
life span of the plant. So the capital investment is depreciated throughout its life span.

Load factor is the ratio between maximum load and the average load. When the load factor is
plants should be designed to take higher load but most of the time it doesn’t cater that much
load. There for resources are wasted capital cost invested are not paid back. Therefore by
increasing the load factor we can optimize the resource utilization. By doing this per unit cost
is also lower by that consumer prices can also be lowerd.