Uninterruptible Power Supply | UPS
Fermi Dirac Distribution Function
Fault of Electric Cable
Energy Bands in Crystals
Gallium Arsenide Semiconductor
Atomic Energy Levels
Electric Power Generation
Power Plants and Types of Power Plant
Thermal Power Generation Plant or Thermal Power Station
Hydro Power Plant | Construction Working and History of Hydro power plant
Nuclear Power Station or Nuclear Power Plant
Diesel Power Station
Why Supply Frequency is 50 Hz or 60 Hz?
Economiser in Thermal Power Plant | Economiser
MHD Generation or Magneto Hydro Dynamic Power Generation
Cogeneration | Combined Heat and Power
Thermoelectric Power Generators or Seebeck Power Generation
Cost of Electrical Energy
Gas Turbine Power Plant
Steam Boiler | Working principle and Types of Boiler
Methods of Firing Steam Boiler
Fire Tube Boiler | Operation and Types of Fire Tube Boiler
Water Tube Boiler | Operation and Types of Water Tube Boiler
Steam Boiler Furnace Grate Firebox Combustion Chamber of Furnace
Feed Water and Steam Circuit of Boiler
Boiler Feed Water Treatment Demineralization Reverse Osmosis Plant Deaerator
Coal Combustion Theory
Fluidized Bed Combustion | Types and Advantages of Fluidized Bed Combustion
Steam Condenser of Turbine
Jet Condenser | Low Level High Level Ejector Jet Condenser
Surface Steam Condenser
Economics of Power Generation
Cooling Tower Useful Terms and Cooling Tower Performance
Cooling Tower Material and Main Components
Power Plant Fire Protection System
Hydrant System for Power Plant Fire Protection
Medium Velocity Water Spray or MVWS System for Fire Protection
Foam Fire Protection System
Fire Detection and Alarm System
Gas Extinguishing System
Solar Energy Solar Electricity
Solar Energy System | History of Solar Energy
Types of Solar Power Station
Components of a Solar Electric Generating System
What is photovoltaic effect?
Staebler Wronski Effect
Working Principle of Photovoltaic Cell or Solar Cell
Characteristics of a Solar Cell and Parameters of a Solar Cell
Solar Cell Manufacturing Technology
What is a Solar PV Module?
What is Standalone Solar Electric System?
Steam Dryness Fraction
Superheated Steam and Steam Phase Diagram
Vapour Properties Mollier Chart Heat Capacities
What is Steam Flashing?
How to Calculate Steam Consumption During Plant Start Up
Effective Steam Distribution System
What is Water Hammer?
Engineering Thermodynamics Part 1
Science of Engineering Thermodynamics Part 2
Basic Law of Conservation and First Law of Thermodynamics
Carnot Cycle and Reversed Carnot Cycle
Enthalpy Entropy and Second Law of Thermodynamics
Rankine Cycle and Regenerative Feed Heating
Rankine Cycle for Closed Feed Water Heaters and Rankine Cycle Cogeneration
Ideal Verses Actual Rankine Cycle
Rankine Cycle Efficiency Improvement Techniques
Basic Wind Energy
Wind Turbine | Working Types and History of Wind Turbine
Theory of Wind Turbine
Cost of Electrical Energy
- Fixed Cost of Electricity: In every manufacturing unit there is some hidden expenditure which fixed. This is same for manufacturing one unit or thousand units of the items. In electric generating station like manufacturing unit, there are some hidden costs which independent of the quantity of electricity produced. These fixed expenditures are mainly due to an annual cost to run the organization, interest on capital cost and tax or rent of the land on which the organization established, salaries of high officials and interests of loans (if any) on the capital cost of the organization. Like these main costs, there are many others expenditures which do not change whether the rate of production of electrical energy units is less or more.
- Semi-fixed Cost: There is another type costing for any manufacturing or production or any similar type of industries. These costs are not strictly fixed and also not fully dependent on the number of items manufactured or produced. These costs depend on the size of the plant. These actually depend on the assumption of a maximum number of items which can be produced from the plant at a time during peak demand period. That means the forecasted production demand of the plant determines how big will be the manufacturing or production plant. Likewise, the size of an electrical generating plant depends on the maximum demand of the connected load of the system. If the maximum demand of the load is quite higher than the average demand of the load, then the power generating plant should be constructed and well equipped to fulfill that maximum demand of the system even the peak demand lasts for less than an hour. This type of costs is referred as semi-fixed cost. It is directly proportional to the maximum demand on the power station. The annual interest and depreciation on capital investment of building and equipment, taxes, salaries of management and clerical staff, expenditure for installation etc. come under semi-fixed costs.
- Running Cost: The concept of running cost is quite simple. It solely depends on the number of units produced or generated. In power generating plant the main running cost is the cost of fuel burnt per unit of electrical energy generation. The cost of lubricating oil, maintenance, repairs and salaries of operating staff are also accounted under running cost of the plant. Since these charges are directly proportional to the number of units generated. For generating more units of electrical energy required running expenditures are more and vies verse.
Expressions for Cost of Electrical EnergyThe total cost of per unit generation of electrical energy can be expressed in the following ways.
First, we have to calculate the entire expenditure of the plant including the organization which are fixed throughout the year and accounted for fixed cost. Say this is a. This is considered as fixed cost for entire electrical energy generated in the year.
In the same way, we have to calculate the total semi-fixed cost of the plant throughout the year. The semi-fixed cost is proportional to maximum demand of the plant. So, we have to find the maximum demand of the year. So the proportionality constant b can easily be calculated. Therefore, the semi-fixed cost of the plant for the year is b(maximum demand kilowatt).
Now, we will calculate entire running expenses of the plant for producing total kWh units of energy generated in the year. If c is the running cost per unit of generated electricity then 0 Total cost of the plant for producing entire electric throughout the year is
Sometimes it is assumed that entire capital cost and other costs except for the running expenses for producing electricity entirely depend on the maximum demand of the plant. In that case, it is assumed that there is no absolute fixed cost. The expression for the annual cost of energy then becomes . Where, A is the cost per unit /maximum demand and B is the running cost of producing one unit of electrical cost.