POWER PLANT ECONOMICS AND VARIABLE LOAD PROBLEM 135

excess of base load plant capacity is dispatched to the best peak system, all of which are nearly equally
efficient, the best load distribution needs thorough study and full knowledge of the system.

SOLVED EXAMPLES

Example 1. Determine the thermal efficiency of a steam power plant and its coal bill per annum
using the following data.
Maximum demand = 24000 kW
Load factor = 40%
Boiler efficiency = 90%
Turbine efficiency = 92%
Coal consumption = 0.87 kg/Unit
Price of coal = Rs. 280 per tonne
Solution.
η = Thermal efficiency
= Boiler efficiency × Turbing efficiency
= 0.9 × 0.92 = 0.83
Load factor = Average Load/Maximum Demand
Average Load = 0.4 × 24000 = 9600 kW
E = Energy generated in a year = 9600 × 8760 = 841 × 105 kWh
Cost of coal per year = (E × 0.87 × 280)/1000
= (841 × 105 × 0.87 × 280)/1000
= Rs. 205 × 105. Ans.
Example 2. The maximum (peak) load on a thermal power plant of 60 mW capacity is 50 mW at
an annual load factor of 50%. The loads having maximum demands of 25 mW, 20 mW, 8 mW and, 5 mW
are connected to the power station.
Determine: (a) Average load on power station (b) Energy generated per year (c) Demand factor
(d) Diversity factor.
Solution.
(a) Load factor = Average load/Maximum demand
Average load = 0.5 × 50 = 25 mW
(b) E = Energy generated per year
= Average load × 8760
= 219 × 106 kWh.
(c) Demand factor = Maximum demand/Connected load
= 50/(25 + 20 + 8 + 5) = 0.86
M1
(d) Diversity factor =
M2
where Ml = Sum of individual maximum demands = 25 + 20 + 8 + 5 = 58 mW
136 POWER PLANT ENGINEERING

M2 = Simultaneous maximum demand = 50 mW

58
Diversity factor = = 1.16. Ans.
50
Example 3. In a steam power plant the capital cost of power generation equipment is Rs. 25 ×
10 . The useful life of the plant is 30 years and salvage value of the plant to Rs. 1 × 105. Determine by
5

sinking fund method the amount to be saved annually for replacement if the rate of annual compound
interest is 6%.
Solution. P = Capital cost = Rs. 20 × 105
S = Salvage value = Rs. 1 × 105
n = Useful life = 30 years
r = Compound interest
A = Amount to be saved per year for replacement

[(P – S) r ] [(20 × 105 − 1 × 105 )0.06]

A= =
{(1 + r )n − 1 {(1 + 0.06)30 − 1}
= Rs. 24,000. Ans.
Example 4. A hydro power plant is to be used as peak load plant at an annual load factor of
30%. The electrical energy obtained during the year is 750 × 105 kWh. Determine the maximum de-
mand. If the plant capacity factor is 24% find reserve capacity of the plant.
Solution.
E = Energy generated = 750 × 105 kWh

(750 × 105 )
Average load = = 8560 kW
8760
where 8760 is the number of hours in year.
Load factor = 30%
M = Maximum demand
Load factor = Average load/Maximum demand
85,600
M= = 28.530 kW
0.3
C = Capacity of plant
E
Capacity factor =
(C × 8760)

(750 × 105 )
0.24 =
(C × 8760)
C = 35,667 kW
Reserve capacity = C – M = 35,667 – 28,530
= 7137 kW. Ans.
POWER PLANT ECONOMICS AND VARIABLE LOAD PROBLEM 137

Example 5. A diesel power station has fuel consumption 0.2 kg per kWh. If the calorific value of
the oil is 11,000 kcal per kg determine the overall efficiency of the power station.
Solution. For 1 kWh output
Heat input = 11,000 × 0.2 = 2200 kcal.
Now 1 kWh = 862 kcal.
Output 866
Overall efficiency = = = 39.2%. Ans.
Input 2200
Example 6. A steam power station has an installed capacity of 120 MW and a maximum demand
of 100 MW. The coal consumption is 0.4 kg per kWh and cost of coal is Rs. 80 per tonne. The annual
expenses on salary bill of staff and other overhead charges excluding cost of coal are Rs.50 × 105. The
power station works at a load factor of 0.5 and the capital cost of the power station is Rs. 4 × 105. If the
rate of interest and depreciation is 10% determine the cost of generating per kWh.
Solution. Maximum demand = 100 mW
Load factor = 0.5
Average load = 100 × 0.5 = 50 MW = 50 × 1000 = 50,000 kW.
Energy produced per year = 50,000 × 8760 = 438 × 106 kWh.
Coal consumption = 438 × 106 × (0.4/1000) = 1752 × 106 tonnes.
Annual Cost
(1) Cost of coal = 1752 × 102 × 80 = Rs. 14,016 × 102
(2) Salaries = Rs. 50 × 105
(3) Interest and depreciation = (10/100) × 4 × 105 = Rs. 4 × 104
Total cost = Rs. 14,016 × 103 + Rs. 50 × 105 + Rs. 4 × 104
= Rs. 19,056 × 103

 (19,056 × 103 ) 
Cost of generation per kWh =   × 100
 (438 × 10 ) 
6

= 4.35 paise. Ans.

Example 7. Any undertaking consumes 6 × 106 kWh per year and its maximum demand is 2000
kW. It is offered two tariffs.
(a) Rs. 80 per kW of maximum demand plus 3 paise per kWh.
(b) A flat rate of 6 paise per kWh.
Calculate the annual cost of energy.
Solution.
(a) (According to first tariff the cost of energy)

 3  6
= 2000 × 80 +   × 6 × 10
 100 
= 160,000 + 180,000 = Rs. 340,000. Ans.
138 POWER PLANT ENGINEERING

(b) Cost of energy according to flat rate

 6  6
=   × 6 × 10 = Rs. 360,000. Ans.
 100 
Example 8. Two lamps are to be compared:
(a) Cost of first lamp is Re. 1 and it takes 100 watts.
(b) Cost of second lamp is Rs. 4 and it takes 60 watts.
Both lamps are of equal candlepower and each has a useful life of 100 hours. Which lamp will
prove economical if the energy is charged at Rs. 70 per kW of maximum demand per year plus 5 paise
per kWh? At what load factor both the lamps will be equally advantageous?
Solution. (a) First Lamp
(1 × 100)
Cost of lamp per hour = = 0.1 paise
1000

100
Maximum demand per hour = = 0.1 kW
1000
Maximum demand charge per hour
0.1 × (70 × 100)
= = 0.08 paise
7860
Energy consumed per hour = 0.1 × 1 = 0.1 kWh
Energy charge per hour = 0.1 × 5 = 0.5 paise
Total cost per hour = 0.1 + 0.08 + 0.5 = 0.68 paise.
(b) Second Lamp
(4 × 100)
Cost of lamp per hour = = 0.4 paise
1000
60
Maximum demand per hour = = 0.06 kW
1000
0.06 × (70 × 100)
Maximum demand charge per hour = = 0.048 paise
8760
Energy consumed per hour = 0.06 × 1 = 0.06 kWh
Energy charge per hour = 0.06 × 5 = 0.3 paise
Total cost per hour = 0.4 + 0.048 + 0.3 = 0.748 paise
Therefore the first lamp is economical
Let x be the load factor at which both lamps become equally advantageous. Only maximum
demand charge changes with load factor.
0.08 0.048
0.1 + + 0.5 = 0.4 + + 0.3
x x
x = 0.32
or 32%. Ans.
POWER PLANT ECONOMICS AND VARIABLE LOAD PROBLEM 139

Example 9. A new factory having a minimum demand of 100 kW and a load factor of 25% is
comparing two power supply agencies.
(a) Public supply tariff is Rs. 40 per kW of maximum demand plus 2 paise per kWh.
Capital cost = Rs. 70,000
Interest and depreciation = 10%
(b) Private oil engine generating station.
Capital Cost = Rs. 250,000
Fuel consumption = 0.3 kg per kWh
Cost of fuel = Rs. 70 per tonne
Wages = 0.4 paise per kWh
Maintenance cost = 0.3 paise per kWh
Interest and depreciation = 15%.
Solution. Load factor = Average load/Maximum demand
Average load = Load factor × Maximum demand
= 0.25 × 700 = 175 kW.
Energy consumed per year = 175 × 8760 = 153.3 × 104 kWh.
(a) Public Supply
Maximum demand charges per year = 40 × 700 = Rs. 28,000.

 2 
Energy charge per year =   × 153.3 × 104 = 30,660
 100 

 10 
Interest and depreciation =   × 70,000 = Rs. 7,000.
 100 
Total cost = Rs. [28,000 + 30,660 + 7,000] = Rs. 65,660

 65,660 
Energy cost per kWh =  4  × 100 = 429 paise
 153.3 × 10 
(b) Private oil engine generating station

(0.3 × 153.3 × 10 4 )
Fuel consumption = = 460 tonnes
1000
Cost of fuel = 460 × 70 = Rs. 32,000
Cost of wages and maintenance
= {(0.4 + 0.3)100} × 153.3 × 104 = Rs. 10,731.
Interest and depreciation

 15 
=   × 250,000 = Rs. 37,500
 100 
140 POWER PLANT ENGINEERING

Total cost = Rs. [33,203 + 10,731 + 37,500]

= Rs. 80,431
Energy cost per kWh

 80, 431 
 4 
× 100 = 5.2 paise. Ans.
 153.3 × 10 

THEORETICAL PROBLEMS

1. Define: load factor, utility factor, plant operating factor, capacity factor, demand factor and
diversity factor.
2. What is the difference between demand factor and diversity factor?
3. What is ‘diversity factor’ ? List its advantages in a power system.
4. Prove that the load factor of a power system is improved by an increase in diversity of load.
5. What is meant by load curve? Explain its importance in power generation.
6. Differentiate ‘dump power’, ‘firm power’ and ‘prime power’.
7. Define ‘depreciation’ and explain its significance.
8. Explain the sinking fund method of calculating the depreciation.
9. Discuss the factors to be considered for, ‘plant selection’ for a
10. How ‘load duration curve’ is obtained from ‘load’ curve ?
11. What are the principal factors involved in fixing of a tariff?

NUMERICAL PROBLEMS

12. The following data is available for a steam power station:

Maximum demand = 25,000 kW; Load factor = 0.4; Coal consumption = 0.86 kg/kWh; Boiler
efficiency = 85%; Turbine efficiency = 90%; Price of coal = Rs. 55 per tonne.
Determine the following:
(i) Thermal efficiency of the station.
(ii) Coal bill of the plant for one year. [Ans. (i) 76.5% (ii) Rs. 41,43,480]
13. The annual peak load on a 30 mW power station is 25 mW. The power station supplies load
having maximum demands of 10 mW, 8.5 mW, 5 mW and 4.5 mW. The annual load factor is
0.45. Find:
(i) Average load (ii) Energy supplied per year
(iii) Diversity factor (iv) Demand factor.
[Ans. (i) 11.25 mW (ii) 98.55 × 106 kWh (iii) 1.12 (iv) 0.9]
14. A power station has a maximum demand of 15 mW, a load factor of 0.7, a plant capacity
factor of 0.525 and a plant use factor of 0.85. Find:
(i) The daily energy produced.
(ii) The reserve capacity of the plant.
POWER PLANT ECONOMICS AND VARIABLE LOAD PROBLEM 141

(iii) The maximum energy that could be produced daily if the plant operating schedule is
fully loaded when in operation.
[Ans. (i) 252,000 kWh (ii) 5,000 kW (iii) 296,470 kWh]
15. Determine the annual cost of a feed water softener from the following data: Cost = Rs. 80,000;
Salvage value = 5%, Life = 10 years; Annual repair and maintenance cost = Rs. 2500; Annual
cost of chemicals = Rs. 5000; Labour cost per month = Its. 300; Interest on sinking fund
= 5%. [Ans. Rs. 17,140]
16. Calculate the unit cost of production of electric energy for a power station for which data are
supplied as follows :
Capacity = 50 MW
Cost per kW = Rs. 600
Load factor = 40%
Interest and depreciation = 10%
Cost of fuel, taxation and salaries = Rs. 36 × 1011. [Ans. 3.71 paise]
17. Estimate the generating cost per unit supplied from a power plant having the following data :
Plant capacity = 120 MW
Capital cost = Rs. 600 × 106
Annual load factor = 40%
Annual cost of fuel, taxation, oil and salaries = Rs. 600,000 Interest and depreciation = 10%
[Ans. 1.33 paise]
18. Estimate the generating cost per unit. supplied from a power plant having data :
Output per year = 4 × 108 kWh
Load factor = 50%
Annual fixed charges = Rs. 40 per kW
Annual running charges = 4 paise per kWh
19. A 50 MW generating station has the following data:
Capital cost = Rs. 15 × 105
Annual taxation = Rs. 0.4 × 105
Annual salaries and wages = Rs. 1.2 × l06
Cost of coal = Rs. 65 per tonne
Calorific value of coal = 5500 kcal/kg.
Rate of interest and depreciation = 12%,
Plant heat rate = 33,000 kcal/kWh
at 100% capacity and 40000 kcal/kWh at 60%.
Calculate the generating cost/kWh at 100% and 60% capacity factor.