Economics of Power Utilization

EE 2850 Applied Electricity

Contents
1. Cost of electric power
2. Factors influencing costs & tariffs 3. Load curve

4. Tariff
5. Reduction of energy costs 6. Power factor correction

1. Cost of Electric Power

It is necessary to properly account for the various direct and indirect costs involved, before fixing the final kWh charges for the consumers.

Fixed

cost Running / Operating cost

Fixed Cost Do not vary with the operation of the plant

Operating Cost Vary with the operation of the plant

Interest on capital investment Allowance for depreciation

Most of the fuel cost Small portion of salaries & wages Repair & maintenance

Taxes & insurance

Most of the salaries & wages Small portion of the fuel cost
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2. Factors influencing Costs & Tariffs

1.

Demand - Load requirement averaged over a specified interval of time of short duration Average Demand - Average power demand during a specified period of time of considerable duration (a day, month or year)

2.

2. Factors influencing Costs & Tariffs

3.

Maximum Demand - Greatest of all the demands which have occurred during a given period - Not the greatest instantaneous demand but the greatest average demand

2. Factors influencing Costs & Tariffs

4.

Demand Factor - Ratio of actual maximum demand made by the load to the rating of the connected load

Maximum demand < Connected load Electrical apparatus are usually selected somewhat greater than the requirement In a group of electrical devices, all are not imposing their maximum demand at the same time
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2. Factors influencing Costs & Tariffs

5.

Diversity of Demand - Maximum demand of various consumers occur at different times during the day and not simultaneously - This results in lower costs of electric energy Diversity Factor

6.

- Usually > 1 - Higher diversity factor - More consumers can be supplied - Lower prices can be offered to consumers

2. Factors influencing Costs & Tariffs

7.

Load Factor
- Ratio of the average power to the maximum demand - Per year, per month or per day

- Equipments are selecting for maximum demand - If fully occupied or not, there are fixed charges - Poor load factors -> charge per kWh high - To improve load factor -> accepting off-peak loads at reduced rates

2. Factors influencing Costs & Tariffs

8.

Plant Factor / Capacity Factor - Relates to a generator station

9.

Utilization Factor

10. Connected Load Factor

- Relates to the receiving equipment

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3. Load Curve
1.

Load Curve Y-axis - Load in kW X-axis - Time Area under the curve - Total energy consumed Following information can be obtained Maximum load Size of generator unit required Daily operating schedule

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3. Load Curve

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4. Tariff
Generating equipment has to be ready to meet

consumers full requirement at all hours of the day

Consumer should pay the Fixed charges

for the portion of the plant that have been allocated to him Variable charges - for the units used by him

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CEB Tariff - Domestic

Up to 30 units 30 ~ 60 units 60 ~ 90 units 90 ~ 180 units 180 ~ 600 units Above 600 units Fixed Charge (Rs/month) 60.00 90.00 120.00 180.00 240.00 240.00 Unit Charge (Rs/kWh) 3.00 4.70 7.50 16.00 25.00 30.00

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CEB Tariff - Industry

Fixed Charge (Rs/month) I-1 I-2 I-3 I-2 (TD) Peak Off peak I-3 (TD) Peal Off peak 240.00 3000.00 3000.00 3000.00 Unit Charge (Rs/kWh) 10.50 9.30 9.10 24.60 8.40 23.00 8.00 Demand Charge (Rs/kWh) 675.00 650.00 650.00

3000.00

650.00

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CEB Tariff Industry / Hotel

3 part Time of Day tariff

- 1830 hrs 2230 hrs Day - 0430 hrs 1830 hrs Off peak - rest of the time
Peak

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5. Reduction of Energy Cost

Reducing energy consumption makes; Reduce energy cost Reduce pollution and make their communities

greener
Tips:

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Monitor energy consumption Choose energy efficient appliances Replace incandescent bulbs with compact fluorescent lights Use less water Use window treatments to control heat loss & heat gain

6. Power Factor Correction

p.f. of all AC motors and transformers is < 1, lagging Majority of industrial motors are induction motors High p.f. at full load Low p.f. at light loads For a 3-phase balanced system supplying a load W at

a voltage V and p.f. cos;

Low p.f. -> high current
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6. Power Factor Correction

Disadvantages of low power factor
Line losses (I2R) is high Ratings of generators and transformers etc, are

proportional to I - large equipment are required high capital cost High capital cost for switch gears and cables Low lagging p.f. causes a large voltage drop - extra regulation equipment is required to maintain voltage drop Low efficiency
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6. Power Factor Correction

Power factor improvement
Inject a leading current into the circuit 1. Installation of static capacitors 2. Installation of synchronous motors 3. Phase advancers

For a factory having no. of induction motors;

Individual or centralized improvement

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6. Power Factor Correction

1.

Static Capacitors

p.f. is varying with load Capacitor may result in over-correction To overcome automatic p.f. correction (control a no. of capacitors) No moving parts installation & maintenance is simple Little or no floor space is requires

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6. Power Factor Correction

2.

Synchronous Motors

May be employed instead of a 3-phase IM By increasing the DC exciting current, the p.f. can be made to lead More expensive
Synchronous capacitors Only as a method of correcting the p.f. of other apparatus Not used to drive any machinery

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6. Power Factor Correction

3.

Phase Advancer

Method of manipulating the phase angle Applied to large IMs A form of AC exciter, mounted on the motor shaft Inject current in the IM rotor circuit

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