EE2092: Laboratory practice III
Practical Assignment 1
Economical Comparison of Different Power Systems
Name : A.G.N.Bandara
Index No : 090041G
Group : G2
Department : Electrical engineering
Date of performed: 2010/10/20
Date of submission: 2010/11/10
Question 1:
a)
Maximum demand of the power system= 100 MW
Load factor given = 30%
averageload 30
Load Factor = =
maximum load 100
average load 30
=
100 MW 100
Average load = 30 MW
Reverse capacity = 25%
Load that should be produced in order to achieve above average demand ¿ 30 ×1.25=37.5 MW
Annual energy production = 37.5 ×103 ×24 × 365
= 3.285 ×108 KW h
b)
i) Steam station in conjunction with a hydroelectric station
Capital cost of steam station = 2500 × ( 60 × 103 × 1.25 )=Rs . 187.50× 106
Capital cost of Hydro power station ¿ 5000 ×40 × 103 × 1.25=Rs . 250× 10⁶
Total Capital cost=Rs 4.375 ×108
Profit expecting (Interest) ¿ 187.50 ×106 ×0.2+250 ×10 6 × 0.15
¿ Rs 75× 10⁶
Operating cost and Transmission cost per 1kwh ¿ 0.18 ×0.6+ 0.4(0.09+0.4)
= Rs 0.304
4.375 ×10 8+7.5 ×10 7
Total cost per 1kwh ¿ +0.304
3.825 ×108
¿ Rs 1.86 per kWh
ii) Steam Station
Capital cost ¿ 2500 ×125 ×103 =Rs.3 .125 ×108
Interest ¿ 2500 ×125 ×103 ×0.2=Rs 6.25× 107
Running cost per 1kwh = Rs 0.18
3.125× 108 +6.25 ×107
Total cost per 1kwh ¿ + 0.18
3.285× 108
= Rs 1.32 per kWh
iii) Hydro Station
Capital cost ¿ 5000 ×125 ×103 =Rs . 6.25 ×108
Interest ¿ 5000 ×125 ×103 ×0.15=Rs . 9.375× 107
Running cost per 1kwh ¿ 0.09+0.40=Rs . 0.49
6.25× 108 +9.375 ×107
Total cost per 1kwh ¿ +0.49
3.285× 108
= Rs. 2. 68 per kWh
iv) Coal
Capital cost ¿ 3000 ×125 ×103 =Rs 3.75 ×10 8
Interest ¿ 3000 ×125 ×103 ×0.22=R s 8.25 ×10 7
Running cost per 1kwh ¿ 0.12+0.4=Rs 0.52
3.75× 108 +8.25 ×107
Total cost ¿ +0.52
3.285× 108
= Rs. 1.91 per kWh
Option Cost per 1kwh
i Rs 1.86
ii Rs 1.32
iii Rs 2.68
iv Rs 1.91
According to these statistics for a large production steam power generation is more economical.
c)
power generated
Load factor =
maximum Demand
Power generated=Load factor × Maximum Demand
Load Average power(Mw) Actual average production(Mw) Annual energy production (kwh)
factor
10% 0.1 ×100=10 0.1 ×100 ×1.25=12.5 12.5 ×103 ×24 × 365=1.095 ×10 8
20% 0.2 ×100=20 0.2 ×100 ×1.25=25 25 ×103 ×24 × 365=2.19 ×10 8
30% 0.3 ×100=30 0.3 ×100 ×1.25=37.5 37.5 ×103 ×24 × 365=3.285 ×10 8
40% 0.4 × 100=40 0.4 × 100× 1.25=50 50 ×103 ×24 × 365=4.38 ×108
50% 0.5 ×100=50 0.5 ×100 ×1.25=62.5 62.5 ×103 ×24 × 365=5.475 ×10 8
i) Steam combined hydro electric station
Capital Cost+ interest¿ 4.375 ×10 8+ 7.5× 107=Rs 5.125 ×108
Running cost per 1kwh = Operating cost + Transmission cost
¿ 0.18 ×0.6+ 0.4 ×(0.09+0.4)
= Rs 0.304
Load factor Annual energy (capital+ capital+ Running cost Total cost per
production Interest )per Interest per per kwh (Rs) kwh(Rs)
(kwh) year (Rs) kwh(Rs)
10% 1.095 ×108 5.125 ×108 4.68 0.304 4.98
20% 2.19 ×108 5.125 ×108 2.34 0.304 2.64
30% 3.285 ×108 5.125 ×108 1.56 0.304 1.86
40% 4.38 × 108 5.125 ×108 1.17 0.304 1.47
50% 5.475 ×108 5.125 ×108 0.94 0.304 1.24
ii) Steam station
Capital cost+ interest ¿ 3.125 ×108 +6.25 ×107 =Rs 3.75× 108
Running cost per 1kwh = Rs 0.18
Load Annual (capital+ capital+ Interest Running cost Total cost per
factor energy Interest )per per kwh(Rs) per kwh (Rs) kwh(Rs)
production year (Rs)
(kwh)
10% 1.095 × 108 3.75 × 108 3.42 0.18 3.6
20% 2.19 × 108 3.75 × 108 1.71 0.18 1.89
30% 3.285 × 108 3.75 × 108 1.14 0.18 1.32
40% 4.38× 108 3.75 × 108 0.86 0.18 1.04
50% 5.475× 108 3.75 × 108 0.68 0.18 0.86
iii) Hydro station
Capital cost + interest ¿ 6.25 ×108 +9.375 × 107=Rs . 7.1875× 108
Running cost per 1kwh ¿ 0.09+0.40=Rs . 0.49
Load Annual energy (capital+ capital+ Running cost Total cost
factor production (kwh) Interest )per Interest per per kwh (Rs) per kwh(Rs)
year (Rs) kwh(Rs)
10% 1.095 × 108 7.1875 × 108 6.56 0.49 7.05
20% 2.19 × 108 7.1875 × 108 3.28 0.49 3.77
30% 3.285 × 108 7.1875 × 108 2.19 0.49 2.68
40% 4.38× 108 7.1875 × 108 1.64 0.49 2.13
50% 5.475× 108 7.1875 × 108 1.31 0.49 1.8
iv) Coal station
Capital cost + interest ¿ 3.75 ×10 8+8.25 ×10 7=Rs 4.575 ×10 8
Running cost per 1kwh ¿ 0.12+0.4=Rs 0.52
Load Annual energy (capital+ capital+ Running cost Total cost per
factor production Interest )per Interest per per kwh (Rs) kwh(Rs)
(kwh) year (Rs) kwh(Rs)
8
10% 1.095 × 10 4.575 × 108 4.18 0.52 4.7
8
20% 2.19 × 10 4.575 × 108 2.10 0.52 2.62
30% 3.285 × 108 4.575 × 108 1.39 0.52 1.91
8
40% 4.38× 10 4.575 × 108 1.04 0.52 1.56
50% 5.475× 108 4.575 × 108 0.84 0.52 1.36
Total cost per kWh variation with load factor
Below cost are given by srilankan Rs
Load factor Steam + Hydro Steam Hydro Coal
10% 4.98 3.6 7.05 4.7
20% 2.64 1.89 3.77 2.62
30% 1.86 1.32 2.68 1.91
40% 1.47 1.04 2.13 1.56
50% 1.24 0.86 1.8 1.36
Problem 2
Electrification with a small hydro power unit
Total power consumption of the village ¿ 150 ×200 w
¿ 30 kw
There are only 5hour consumption occur in one house
Total energy use by village per year ¿ 30 ×5 ×365 kWh
¿ 54750 kwh
Efficiency of the power plant ¿ 80 %
Reverse capacity of the plant ¿ 1/0.8=1.25
Power generation of the year ¿ 54750 ×1.25 kWh
¿ 68437.5 kWh
1
Annuity factor ¿ [1 – (1+r )−n]
r
1
¿ [1 – (1+ 0.2)−20]
0.2
= 4.8696
Total cost ¿ cost o f generation × Annuity factor
1 800 000 ¿( 68437.5 x )× 4.8696
X = Rs. 5.4
When electrify using small hydro unit cost per 1kwh = Rs. 5.4
Supply off grid electricity for isolated village
Annual usage of the village ¿ 150 ×50 ×12
¿ 90 000 kwh
Total cost for a distribution ¿ 600 000 ×10+ 400 000× 2+500 000
6
¿ Rs .7.3∗10
Total cost ¿ cost of generation × Annuity factor
6
7.3 ×10 ¿ 90 000 × x ×4.8696
X = Rs. 16.66
When electrify using off grid system cost per 1kwh = Rs. 16.66
When consider about these values electrification with small hydro power is more economical for this village
DISCUSSION
Importance of depreciation and interest rate on the power plant life cycle.
Rate of interest
The money may be obtained mainly as loan when the investment is carried out, Interest is the difference between
money borrowed and money returned. The interest has a rate and it will be charged anuually or some times
monthly,This is important because if the interest rate high the unit cost will go high.The investment may not be
profitable.Being mindful to lower the interst rate is very important.
Depreciation
The meaning of the depreciation is the deterioration of the equipment and decrease in its value due to
corrosion, weathering and wear and tear with use.Also we can include decrease in value of equipment due to
becoming out of date. With rapid improvements in design and construction of plants, obsolescence factor is of
tremendous importance. Availability of better models with lesser overall cost of generation makes it
imperative to replace the old equipment earlier than its useful life is spent. The actual life span of the plant
has, therefore, to be taken as shorter than what would be normally expected out of it.
Depreciation is calculated by estimating a salvage cost for any piece of equipment then subtracting that
amount from the cost of the asset. This depreciation value, however, is only the beginning. The real work
comes with the method of depreciation. There are two main types of depreciation. The first is straight line
depreciation. In this method that value left over after subtraction is then divided by the life of the asset. It is
important to understand that the asset or piece of equipment may in fact last much longer that the
depreciation schedule but it is generally considered more cost efficient to depreciate an asset over a specific
number of year, thereby front loading the tax advantages. With straight line depreciation the depreciation
value subtracted from the asset value remains constant every year. While the second is the accelerated
depreciation method, sometimes called the double declining method, uses a percentage to calculate the asset
depreciation value each year. By doing this the asset is depreciated much faster than with straight line
depreciation. In the end it is up to the business to decide which is more beneficial to the company and what
method is the right choice. Also, it should be noted that any method of depreciation can be used for different
pieces of equipment. If a power plant running company buys a diesel and a snow coal on the same day the
company could very well put the coal on a straight line schedule and the diesel on an accelerated schedule.
Both types of depreciation schedules have more than one way to actually depreciate an item but for the
purposes of this article straight-line will be the focus; just for ease of use.
On a company’s balance sheet depreciation is represented with a depreciation expense account and an
accumulated depreciation account. The accumulated depreciation account is a contra asset and the balance in
this account is the cumulative total of the depreciation. So if we assume that our disel cost 25,000 LKR and is
depreciated over 10 years with a resale value of 5,000 LKR at that time then each year a credit of 2,000 LKR is
made to the accumulated depreciation account and a debit of 2,000 LKR is made to the depreciation expense
account.
Importance of high load factor and the problems that can be solved using that.
load factor is a measure of the output of a power plant compared to the maximum output it could produce.
There are two commonest definitions one is the ratio of average load to capacity and the another one is the
ratio of average load to peak load in a period.
Assuming the first definition, a higher load factor is better:
A power plant may be less efficient at low load factors.
A high load factor means fixed costs are spread over more kWh of output.
A high load factor means greater total output.
Therefore a higher load factor usually means more output and a lower cost per unit, which means an
electricity generator can sell more electricity at a higher spark spread.
Many companies disclose load factors for their major plants. When comparing load factors over time it is
important to remember that there are likely to be large seasonal changes quarter-on-quarter, so year-on-year
changes are more likely to be significant. Since load factor is an expression of how much energy was actually
used compared to peak demand, a demand rate customer can reduce the average cost per kilowatt hour by
improving their load factor by reducing their peak demand. Controlling load factor is one way demand rate
customers can control electric costs.
