Economic of power generation 7

 Question = The capital cost of a hydro - power station of 50 MW capacity , is RS 1000 per kW. The annual depreciation charges are 10% (F) of the capital cost. A royalty of re 1 per kW per year and re 0.01 per kWh generated is to be paid for using the river water for generation of power. The maximum demand on the power station is 40 MW and annual load factor is 60 . Annual cost of salaries, maintenance charges etc is RS 700000. If 20% of the expense is also chargeable as fixed charges , calculate the generation cost in two part form ?

Solution = 1 st part, annual running charges = formula , 

» Cost per kW = cost per kW due to fixed charges + royalty , 

» given, royalty = 1 RS , 

» cost per kW due to fixed charges  = total annual fixed charges ÷ M.D. 

» is M.D. = 40 × 10³ kW , 

» Total annual fixed charges = depreciation charges of capital cost + charges of salaries , maintenance etc , 

» capital cost of plant = 50 × 10³ × 1000 , = 50 × 10⁶ RS , 

» depreciation charges of capital cost = 10% ×( 50 × 10⁶ ) = 5 × 10⁶ RS , or , 50 × 10⁵ RS , 

» charges of salaries , maintenance etc = 20% × 7,00000 = 1.4 × 10⁵ RS , 

»So , total annual fixed charges = 50 × 10⁵ RS + 1.4 × 10⁵ RS  = 51.4 × 10⁵ RS , 

» Cost per kW = ( 51.4 × 10⁵ RS ) ÷ ( 40 × 10³ ) +1 RS , = 128.5 +1 = 129.5 RS , answer ✓ 

» 2 nd part , Annual running charges , 

» formula , Cost per kWh = cost kWh due to running charges + royalty , 

»  cost per kWh due to running charges = RS of Salaries maintenance etc ÷ unit generated per annum , 

» royalty = given, 0.01 RS , 

» given , 20% fixed charges , extra = 100 - 20 = 80% , running charges , 

» Salaries maintenance etc = 80% × 7,00000 = 5.6 × 10⁵ RS , 

» unit generated per annum = M.D. × L.F. × hours in a years , = 40 ×10³ × 0.6 ×8760 = 210.24 × 10⁶ kWh , 

» So , Cost per kWh = ( 5.6 ×10⁵ ) ÷ ( 210.24 ×10⁶ ) + 0.01 , = 0.0027 + RS 0.01 = 0.0127 RS , answer ✓ 

» total generation cost in two part from is given by , ( 129.5 × kW + 0.0127 × kWh ) . 


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