SRI MANAKULA VINAYAGAR

ENGINEERING COLLEGE
(An Autonomous Institution)
Puducherry

DEPARTMENT OF ELECTRICAL AND ELECTRONICS ENGINEERING

POWER SYSTEM ECONOMICS

U19EEE80

POWER SYSTEM ECONOMICS 1

COURSE OBJECTIVES

 To Gain knowledge on operation of power plants and

electrical tariff of the power system.
 To solve cost and loss calculation for optimum economy.
 To determine and explain the economic scheduling of
operation of thermal and hydro thermal stations.
 To acquire knowledge on analyzing, synthesizing various
constraints methods.
 To estimate and analysis generation system reliability.

POWER SYSTEM ECONOMICS 2

SYLLABUS

UNIT I: ECONOMIC CONSIDERATIONS

Cost of electrical energy - Expressions for cost of electrical

energy – Capital-interest – Depreciation - Different methods -
Factors affecting cost of operation - Number and size of
generating units - Importance of high load factor -
Importance of power factor improvement - Most economical
power factor - Meeting the KW demand on power stations -
Power system tariffs -Regions and structure of Indian Power
System - Regulatory and Policy development in Indian power
Sector.

POWER SYSTEM ECONOMICS 3

SYLLABUS

UNIT II: ECONOMIC DISPATCH

Modeling of Cost Rate Curves – Economic Dispatch

Calculation - Losses neglected, with generator Real and
Reactive power limits; Losses included - Losses of economy in
incremental cost data - General loss formula-Participation
Factor-Problems - Generator Capability Curve – Effect of
Ramping rates – Prohibited Operating Zones - Automatic
Load dispatch in Power Systems.

POWER SYSTEM ECONOMICS 4

SYLLABUS

UNIT III: INTERCONNECTED SYSTEMS

Interconnected operation - Economic operation of hydro

thermal power plants - Iteration scheme - Gradient approach
– Newton’s method - Modeling and solution approach to
short term and long term Hydro-Thermal scheduling problem
using Dynamic Programming.

POWER SYSTEM ECONOMICS 5

SYLLABUS

UNIT IV: OPTIMAL POWER FLOW

Problem formulation - Cost minimization - Loss minimization

- Solution using NLP and successive LP methods – Constraints
- DC and AC OPF (Real and Reactive Power Dispatch) – Effect
of Contingencies - Voltage and Phase angle - Transient Voltage
Dip/Sag Criteria

POWER SYSTEM ECONOMICS 6

SYLLABUS

UNIT V: FUNDAMENTALS OF MARKETS

Fundamentals of Markets – Introduction to Efficiency and

Equilibrium - Modeling of consumers and producers – Single
and Double Auction mechanism - Global welfare – Dead Loss
– Spot and Forward Markets- carbon credit

POWER SYSTEM ECONOMICS 7

COURSE OUTCOMES

After completion of the course, the students will be able to

CO1 - Compute the structure of electrical tariff and the impact of

depreciation. (K2)
CO2 - Analyze the technical problems associated with operation of
power systems. (K4)
CO3 - Analyze Thermal and Hydro generator characteristics and
their economic operation. (K4)
CO4 - Solve the Unit Commitment problem with various constraints
using conventional optimization techniques. (K3)
CO5 - Comprehend the importance of maintaining reliability of
power systems. (K3)

POWER SYSTEM ECONOMICS 8

TEXT BOOKS

1. Allen J Wood and BF Wollen berg, 3. V. K. Metha and Rohit Metha,

“Power Generation, Operation “Principles of Power System”,
and Control”, S. Chand,
John Wiley and Sons, New York, 4th Edition, 2008.
1st Edition, 2013.

2. Steven Stoft,
“Power System Economics”,
John Wiley and Sons,
1st Edition, 2002.

POWER SYSTEM ECONOMICS 9

REFERENCE BOOKS

1. Daniel S .Kirschen and Goran Strbac, “Power System Economics”, John Wiley and Sons
Ltd, 2nd Edition, 2018.
2. Hadi Saadat, “Power System Analysis”, Tata McGraw Hill Education Pvt. Ltd., New
Delhi, 21st Reprint Edition, 2010.
3. Fereidoon P. Sioshansi and Wolfgang Pfaffenberger, “Electricity Market Reform”,
Elsevier Science Ltd, 1st Edition, 2006.
4. Xiao-Ping Zhang, “Restructured Electric Power Systems: Analysis of Electricity
Markets with Equilibrium Models”, John Wiley and Sons, 1st Edition, 2010.
5. M. A. Pai, “Computer Techniques in Power System Analysis”, Tata McGraw-Hill
Publishing Company Ltd., New Delhi, 2nd Edition, 2012.

POWER SYSTEM ECONOMICS 10

WEB REFERENCES

 https://nptel.ac.in/courses/108/101/108101005/
 https://nptel.ac.in/courses/108/101/108101040/
 https://pserc.wisc.edu/webinars/systems_webinars.aspx
 https://www.classcentral.com/course/swayam-computer-aided-power-system-
analysis-12954
 https://www.powermin.nic.in
 https://www.posoco.in
 http://www.ijerd.com/paper/Conference/Version-2/E3645.pdf
 http://ijoer.com/Paper-January-2016/IJOER-JAN-2016-4.pdf

POWER SYSTEM ECONOMICS 11

POWER SYSTEM ECONOMICS

Introduction
 A power system consists of several generating stations, where
electrical energy is generated and several consumers for whose use
the electrical energy is generated.

 The objective of any power system is to generate electrical energy in

sufficient quantities at the best-suited locations and to transmit it to
the various load centers and then distribute it to the various
consumers maintaining the quality and reliability at an economic price

POWER SYSTEM ECONOMICS 12

INTRODUCTION

 A power station is required to deliver power to a large number of

consumers to meet their requirements.
 While designing and building a power station, efforts should be made to
achieve overall economy so that the per unit cost of production is as low as
possible.
 This will enable the electric supply company to sell electrical energy at a
profit and ensure reliable service.
 The problem of determining the cost of production of electrical energy is
highly complex and poses a challenge to power engineers.

POWER SYSTEM ECONOMICS 13

INTRODUCTION

 There are several factors which influence the production cost such as
 Cost of land
 Cost of equipment,
 Depreciation of equipment,
 Interest on capital investment etc.

 Therefore, a careful study has to be made to calculate the cost of

production.

POWER SYSTEM ECONOMICS 14

ECONOMICS POWER GENERATION

 The art of determining the per unit (i.e., one kWh) cost of production of
electrical energy is known as Economics of Power Generation

 A consumer will use electric power only if it is

supplied at reasonable rate.
 Power engineers have to find convenient methods
to produce electric power as cheap as possible.

POWER SYSTEM ECONOMICS 15

TERMS USED IN POWER ECONOMICS

 Interest.
The cost of use of money is known as interest.

 A power station is constructed by investing a huge capital.

 This money is generally borrowed from banks or other financial
institutions and the supply company has to pay the annual interest on
this amount.
 Even if company has spent out of its reserve funds, the interest must
be still allowed for, since this amount could have earned interest if
deposited in a bank.
 While calculating the cost of production of electrical energy, the
interest payable on the capital investment must be included.
 The rate of interest depends upon market position and other factors,
and may vary from 4% to 8% per annum.

POWER SYSTEM ECONOMICS 16

TERMS USED IN POWER ECONOMICS

 Depreciation.
The decrease in the value of the power plant equipment and building
due to constant use.

 From the time the power station is installed, its equipment steadily deteriorates due to
wear and tear so that there is a gradual reduction in the value of the plant.

 This reduction in the value of plant every year is known as annual depreciation.

 Due to depreciation, the plant has to be replaced by the new one after its useful life.

 Therefore, suitable amount must be set aside every year so that by the time the plant
retires, the collected amount by way of depreciation equals the cost of replacement.

 While determining the cost of production, annual depreciation charges must be included

POWER SYSTEM ECONOMICS 17

COST OF ELECTRICAL ENERGY

The total cost of electrical energy generated can be divided into three parts,

(i) Fixed cost;

(ii) Semi-fixed cost;

(iii) Running or operating cost.

POWER SYSTEM ECONOMICS 18

FIXED COST

It is the cost which is independent of maximum demand and units

generated.

 The fixed cost is due to the annual cost of central organization, interest on capital
cost of land and salaries of high officials.
 It has to be met whether the plant has high or low maximum demand or it generates less or
more units.
 Further, the capital investment on the land is fixed and hence the amount of interest is also
fixed.

POWER SYSTEM ECONOMICS 19

SEMI-FIXED COST

It is the cost which depends upon maximum demand but is independent of

units generated.

 The semi-fixed cost is directly proportional to the maximum demand on power station and
is on account of annual interest and depreciation on capital investment of building and
equipment, taxes, salaries of management and clerical staff.
 The maximum demand on the power station determines its size and cost of installation.
The greater the maximum demand on a power station, the greater is its size and cost of
installation.
 Further, the taxes and clerical staff depend upon the size of the plant and hence upon
maximum demand

POWER SYSTEM ECONOMICS 20

RUNNING COST (OR) OPERATING COST

It is the cost which depends only upon the number of units generated.

 The running cost is on account of annual cost of fuel, lubricating oil, maintenance, repairs
and salaries of operating staff.
 Since these charges depend upon the energy output, the running cost is directly
proportional to the number of units generated by the station.
 In other words, if the power station generates more units, it will have higher running cost
and vice-versa

POWER SYSTEM ECONOMICS 21

RUNNING COST (OR) OPERATING COST

 Salaries of the operating staff:

The higher the size (capacity), the more the number of operating personnel required.
 Other Costs:
These costs are not applicable for all plants and consist of charges for feed water
(TPS), the water treatment costs (HPS and TPS) and enrichment of fuel costs (NPS).
 Cost of fuel:
This cost, of course, varies with the type of plant . It is lower in thermal (coal based)
plants than nuclear plants However, for hydroelectric plants (HPS), this cost is nil.
 Cost of maintenance and repairs:
As a plant ages, wear and tear occur, and maintenance is needed. The wear and tear
of the plant necessitate the use of lubricating oil which has its own cost.

POWER SYSTEM ECONOMICS 22

EXPRESSIONS OF COST OF ELECTRICAL ENERGY

 Annual cost of electrical energy generated by a power station can be

expressed in two forms

 Three part form

 Two part form

POWER SYSTEM ECONOMICS 23

THREE PART FORM

 The overall annual cost of electrical energy generated is divided into three
parts viz fixed cost, semi-fixed cost and running cost.

Total annual cost of energy

= Fixed cost + Semi-fixed cost +Running cost
= Constant+ Proportional to max. demand + Proportional
to kWh generated
= Rs (a+ b kW + c kWh)

Where,
a = annual fixed cost independent of maximum demand and energy output.
b = constant which when multiplied by maximum kW demand on the station gives the
annual semi-fixed cost.
c = a constant which when multiplied by kWh output per annum gives the annual running
cost.

POWER SYSTEM ECONOMICS 24

TWO PART FORM

It is sometimes convenient to give the annual cost of energy in two part form

 The annual cost of energy is divided into two parts viz., a fixed sum per
kW of maximum demand plus a running charge per unit of energy

Total annual cost of energy = Rs. (A kW + B kWh)

Where,
A = a constant which when multiplied by maximum kW demand on the station gives
the annual cost of the first part.

B = a constant which when multiplied by the annual kWh generated gives the annual
running cost

POWER SYSTEM ECONOMICS 25

METHODS TO DETERMING DEPRECIATION

 Reduction in the value of the equipment and other property of the plant every year
due to depreciation

 Suitable amount must be set aside annually so that the time the life span of the
plant is over, the collected amount equals the cost of replacement of the plant

 The following are the commonly used methods for determining the annual
depreciation charge

(i) Straight line method

(ii) Diminishing value method

(iii) Sinking fund method.

POWER SYSTEM ECONOMICS 26

STRAIGHT LINE METHOD

A constant depreciation charge is made every year on the

basis of total depreciation and the useful life of the
property.

Annual depreciation charge will be equal to the total

depreciation divided by the useful life of the property.

POWER SYSTEM ECONOMICS 27

STRAIGHT LINE METHOD - Example

If the initial cost of equipment is Rs 1,00,000 and its scrap

value is Rs 10,000 after a useful life of 20 years, then

𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛
Annual depreciation charge =
𝑈𝑠𝑒𝑓𝑢𝑙 𝑙𝑖𝑓𝑒

1,00,000−10,000
=
20
90000
=
20
= Rs. 4,500

POWER SYSTEM ECONOMICS 28

STRAIGHT LINE METHOD

 In general, the annual depreciation charge on the straight line

method may be expressed as

(P−S)
 Annual depreciation charge =
𝑛

Where

P = Initial cost of equipment

n = Useful life of equipment in years
S = Scrap or salvage value after the useful life of the plant

POWER SYSTEM ECONOMICS 29

STRAIGHT LINE METHOD

The total depreciation value is calculated by subtracting the

'salvage (scrap) value after the lifespan from the initial cost.
Annual Depreciation = (Initial cost - Scrap value) / Useful life of the plant

Fig. shows the graphical representation of

the method.

 It is clear that initial value P of the

equipment reduces uniformly, through
depreciation, to the scrap value S in the
useful life of the equipment.
 The depreciation curve (PA) follows a
straight line path, indicating constant
annual depreciation charge.

POWER SYSTEM ECONOMICS 30

STRAIGHT LINE METHOD: MERITS AND LIMITATION

 The straight line method is extremely simple

 It is easy to apply as the annual depreciation charge can be

readily calculated from the total depreciation and useful
life of the equipment.

 Assumption of constant depreciation charge every year is

not correct.

 It does not account for the interest which may be drawn

during accumulation.

POWER SYSTEM ECONOMICS 31

 DIMINISHING VALUE METHOD

In this method, depreciation charge is made every year at a fixed

rate on the diminished value of the equipment.

Depreciation charge is first applied to the initial cost of

equipment and then to its diminished value.

POWER SYSTEM ECONOMICS 32

 Example

 suppose the initial cost of equipment is Rs 10,000 and

its scrap value after the useful life is zero.

Step 1: First year

 If the annual rate of depreciation is 10%, then

depreciation charge for the first year will be
0·1 ×10,000 = Rs 1,000.
 The value of the equipment is diminished by Rs 1,000
and becomes Rs 9,000.

POWER SYSTEM ECONOMICS 33

Step 2: Second Year
 For the second year, the depreciation charge will be made on the
diminished value (i.e.Rs 9,000) and becomes 0·1 ×9,000 = Rs
900.
 The value of the equipment now becomes 9000 −900 = Rs 8100.

Step 3: Third Year
 For the third year, the depreciation charge will be 0·1 ×8100 = Rs
810 and so on.

POWER SYSTEM ECONOMICS 34

Mathematical treatment

Let P = Capital cost of equipment

n = Useful life of equipment in years
S = Scrap value after useful life
 Suppose the annual unit* depreciation is x. It is desired
to find the value of x in terms of P, n and S.

Value of equipment
 after one year = P – Px = P (1 – x)

POWER SYSTEM ECONOMICS 35

Value of equipment after 2 years
= Diminished value – Annual depreciation
= [P – Px] – [(P – Px)x]
= 𝑃 − 𝑃𝑥 − 𝑃𝑥 + 𝑃𝑥 2
= 𝑃(𝑥 2 −2𝑥 + 1)
= 𝑃(1 − 𝑥)2
Value of equipment after n years = 𝑃(1 − 𝑥)𝑛

POWER SYSTEM ECONOMICS 36

But the value of equipment after n years (i.e., useful life)
is equal to the scrap value S. S = P(1 - x)n
(1 - x)n = S/P
1 - x = (S/P)1/n
x = 1 - (S/P)1/n
𝑠 1/𝑛
Annual depreciation 𝑥 = 1 −( )
𝑃

Thus, depreciation to be made for the first year is given by :

Depreciation for the first year = xP
= P[1 - (S/P)1/n]

Similarly, annual depreciation charge for the subsequent years can be

calculated.

POWER SYSTEM ECONOMICS 37

GRAPHICAL METHOD

 Fig. shows the graphical representation of

diminishing value method.

 The initial value P of the equipment reduces,

through depreciation, to the scrap value S over
the useful life of the equipment.

 The depreciation curve follows the path PA .

 It is clear from the curve that depreciation

charges are heavy in the early years but
decrease to a low value in the later years

POWER SYSTEM ECONOMICS 38

 DRAWBACKS
 Low depreciation charges are made in the late years when the
maintenance and repair charges are quite heavy.

 The depreciation charge is independent of the rate of interest

which it may draw during accumulation. Such interest moneys,
if earned, are to be treated as income.

POWER SYSTEM ECONOMICS 39

SINKING FUND METHOD

 A fixed depreciation charge is made every year and interest

compounded on it annually.

 Constant depreciation charge is such that total of annual

installments plus the interest accumulations equal to the cost
of replacement of equipment after its useful life.

POWER SYSTEM ECONOMICS 40

SINKING FUND METHOD

Let P = Initial value of equipment

n = Useful life of equipment in years
S = Scrap value after useful life
r = Annual rate of interest expressed as a decimal

Cost of replacement =P – S

 Let us suppose that an amount of q is set aside as

depreciation charge every year and interest
compounded on it so that an amount of P− S is available
after n years.

POWER SYSTEM ECONOMICS 41

 An amount q at annual interest rate of r will become *q(1 + r)n
at the end of n years.

Prof:
At the end of first year, amount is
= q + rq = q(1 + r)
At the end of second year, amount is
= (q + rq) + r(q + rq) = q + rq + rq + r2q
Similarly, at the end of n years, amount is
= q(1 + r)n

POWER SYSTEM ECONOMICS 42

 The amount q deposited at the end of first year will
earn compound interest for n - 1 years and shall
become q(1 + r)n - 1
 i.e.,
Amount q deposited at the end of first year becomes
= q (1 + r)n – 1
Amount q deposited at the end of 2nd year becomes
= q (1 + r)n - 2
Amount q deposited at the end of 3rd year becomes
= q (1 + r)n - 3

POWER SYSTEM ECONOMICS 43

Similarly amount q deposited at the end of n - 1 year
becomes
= q (1 + r)n-(n- 1)
= q (1 + r)
Total fund after n years
= q (1 + r)n - 1 + q (1 + r)n - 2 +…..+ q (1 + r)
= q [(1 + r)n - 1 + (1 + r)n - 2 + …..+ (1 + r)]

q(1  r ) n  1
Sinking fund 
r

POWER SYSTEM ECONOMICS 44

This total fund must be equal to the cost of replacement
of equipment i.e., P – S
q(1  r )  1 n
Then, PS 
r
 r 
Annual Deposit using Sinking fund q  ( P  S ) 
 (1  r ) n
 1 
Where
‘q’ - uniform annual depreciation charge
 r 
 (1  r ) n  1
  - sinking fund factor

POWER SYSTEM ECONOMICS 45

Differences between Straight line method and
Diminishing value method

STRAIGHT LINE DIMINISHING VALUE

METHOD METHOD

The depreciation amount

The depreciation amount
provided on the asset using
provided on the asset is not
Straight Line Method is
constant every year but the
constant every year
percent of depreciation is
throughout the lifetime of
constant.
the asset.

POWER SYSTEM ECONOMICS 46

DIFFERENCES BETWEEN STRAIGHT LINE METHOD AND
DIMINISHING VALUE METHOD

Value of Asset

STRAIGHT LINE DIMINISHING VALUE

METHOD METHOD

The value of the asset

The value of the asset never
becomes zero or nill at the
become zero at the end of the
end of the lifetime of the
lifetime of the asset.
asset.

POWER SYSTEM ECONOMICS 47

DIFFERENCES BETWEEN STRAIGHT LINE METHOD AND
DIMINISHING VALUE METHOD

DEPRECIATION AMOUNT

STRAIGHT LINE DIMINISHING VALUE

METHOD METHOD

The depreciation The depreciation

amount of the asset amount of the asset is
stays same for all the higher in the earlier
years of lifetime of an years and become lesser
asset. in the later years.

POWER SYSTEM ECONOMICS 48

DIFFERENCES BETWEEN STRAIGHT LINE METHOD AND
DIMINISHING VALUE METHOD

Overall Charge

STRAIGHT LINE DIMINISHING VALUE

METHOD METHOD

In Straight Line Method, the In Diminishing Balance

overall charge on the assets Method, the overall charge
go on increasing year by remains more or less same
year because of the because of the decreasing
increasing maintenance and depreciation in the later
repair costs of the asset as years and increasing repair
the time passes. costs as years pass.

POWER SYSTEM ECONOMICS 49

Problem: A distribution transformer costs Rs 2,00,000 and has a useful life of
20 years. If the salvage value is Rs 10,000 and rate of annual compound
interest is 8%, calculate the amount to be saved annually for replacement of
the transformer after the end of 20 years by sinking fund method.
Solution :
Initial cost of transformer P = Rs 2,00,000
Salvage value of transformer S = Rs 10,000
Useful life n = 20 years
Annual interest rate r = 8% = 0·08

Annual payment for sinking fund=

 r 
q  ( P  S ) 
 (1  r ) n
 1 

 0.08 
q  (2,00,000  10,000)  
 (1  0.08) 20
 1 
 0.08 
q  (1,90,000)  
 4.66  1  Rs.4193
 Rs .4193
POWER SYSTEM ECONOMICS 50
 Problem: The equipment in a power station costs Rs 15,60,000 and has a salvage value of Rs 60,000 at the
end of 25 years. Determine the depreciated value of the equipment at the end of 20 years on the following
methods :
(1). Diminishing value method ; (2). Sinking fund method at 5% compound interest annually

Solution :
Initial cost of equipment, P = Rs 15,60,000
Salvage value of equipment, S = Rs 60,000
Useful life, n = 25 years
Diminishing value method
Annual Depreciation value:

𝑠
𝑥 = 1 − ( )1/𝑛
𝑃
1
 60000  25
x  1  
 1560000 

x  1  0.878  0.122

POWER SYSTEM ECONOMICS 51

Value of equipment after 20 years

P(1  x)20
= 15,60,000 (1  0·122)20
= Rs 1,15,615

POWER SYSTEM ECONOMICS 52

 SINKING FUND METHOD
Rate of interest, r = 5% = 0·05
 r 
Annual deposit in the sinking fund is q  ( P  S ) 
 (1  r ) n
 1 
 0.05 
q  (1560000  60000)  
 (1  0.05)  1
20

q=31,433
q(1  r ) n  1
Sinking fund at the end of 20 years 
r
31433(1  0.05) 20  1
 =Rs 10,39,362
0.05
Value of plant after 20 years
= Rs (15,60,000 − 10,39,362) = Rs 5,20,638

POWER SYSTEM ECONOMICS 53

FACTORS AFFECTING THE
COST OF GENERATION

POWER SYSTEM ECONOMICS 54

1. AVERAGE DEMAND OR LOAD

Definition:

The average of loads occurring on the power

station in a given period (day or month or year) is
known as average load or average demand.

POWER SYSTEM ECONOMICS 55

The Average Demand is Calculated by using given formula:

Yearly or Annual Average Load =

POWER SYSTEM ECONOMICS 56

MAXIMUM DEMAND (MD):

Definition: It is the greatest demand of load on the Power Station during a

giving period is known as Maximum Demand

or
The maximum demand of the power station is equal to maximum load on
the station considered in a given period of time.

POWER SYSTEM ECONOMICS 57

POWER SYSTEM ECONOMICS 58
 The load on every power station in not constant.

 The load varies from time to time.

 The variation of load on the power station is depends upon the demand of load
with respect to time.

 Consider, the above figure, the figure X-axis Represents Time in Hours & Y-axis
represents Load in MW.

 In this figure, at every two hours give information about how much load
generated. Out of the 6MW load generated during evening period.

 So that maximum Demand is 6MW. The Knowledge of Maximum Demand is

very important as it helps in determining the installed capacity of the power
station.
POWER SYSTEM ECONOMICS 59
3. DEMAND FACTOR:

Definition: It is the Ratio of Maximum Demand on the Power Station to

its Connected Load.

Demand Factor =Maximum Demand/Connected load

The value of Demand factor is usually less than 1. It is excepted because

maximum demand on the power station generally less than the connected
load.

The knowledge of Demand Factor is vital in determining the capacity of

the plant equipments.

POWER SYSTEM ECONOMICS 60

4. PLANT CAPACITY FACTOR:

Definition: The Plant Capacity Factor is the ratio of average demand on the
Power Station divided by the maximum installed capacity of the power
station.

Plant Capacity Factor =

The plant capacity factor is an indication of the reserve capacity of the plant.

Reserve Capacity = Plant Capacity Factor – Maximum Demand

POWER SYSTEM ECONOMICS 61

5. PLANT USE FACTOR:

Definition: It is the ratio of kWh generated to the product of plant

capacity and the number of hours for which the plant was in operation.

Plant use factor indicated how much is the plant capacity utilized, but it
does not indicate the time for which the plant remained idle.

POWER SYSTEM ECONOMICS 62

6. DIVERSITY FACTOR:

Definition: The Ratio of the sum of individual maximum demands to the

maximum demands on power station is known as Diversity Factor.

For the above mentioned formulae the value of diversity factor is more
than 1

POWER SYSTEM ECONOMICS 63

7. CONNECTED LOAD:

Definition: The sum of continuous ratings of all the equipment's

connected to supply system.

 A power station supplies load to thousands of consumers.

 Each consumer has certain equipment installed in his premises.
The sum of the continuous ratings of all the equipments in the
consumer’s premises is the “connected load” of the consumer.

For instance, if a consumer has connections of five 100-watt lamps and a power point
of 500 watts, then connected load of the consumer is 5 × 100 + 500 = 1000 watts.

The sum of the connected loads of all the consumers is the connected load to the
power station.

POWER SYSTEM ECONOMICS 64

8. LOAD FACTOR:

Definition: The ratio of number of units actually generated in a given period to

number of units which could have been generated with the same maximum
demands is called as load factor for the station.
The Ratio of Average Load to the Maximum Demand during a given period is
known as load factor.

Assume that the plant is operation for ‘T’ Hours

POWER SYSTEM ECONOMICS 65

8. LOAD FACTOR:

 The load factor may be daily load factor, monthly load factor or yearly
load factor, if the time period considered is a day or month or year.
 Load factor is always less than 1
 The load factor plays key role in determining the overall cost per unit
generated.
 Higher the load factor of the power station, lesser will be the cost per
unit generated.

POWER SYSTEM ECONOMICS 66

9. PLANT USE FACTOR:

Definition: It is ratio of kWh generated to the product of plant capacity

and the number of hours for which the plant was in operation

Suppose a plant having installed capacity of 20 MW produces annual output of

7·35  106 kWh and remains in operation for 2190 hours in a year. Then,

POWER SYSTEM ECONOMICS 67

10. UNIT GENERATED PER ANNUM:

It is often required to find the kWh generated per annum form maximum
demand & load factor.

POWER SYSTEM ECONOMICS 68

LOAD FACTOR

 Definition:
 Load factor is defined as the ratio of the average load over a given
period to the maximum demand (peak load) occurring in that period.

 In other words, the load factor is the ratio of energy consumed in a

given period of the times of hours to the peak load which has
occurred during that particular period.

POWER SYSTEM ECONOMICS 69

Load factor means how efficiently we use energy.

It is the measure of the utilisation of electrical energy during a

given period to the maximum energy which would have been
utilised in that period.

The load factor plays an important role in the cost of generation

per unit (kWh).

The higher the load factor the smaller will be the generation
cost for the same maximum demands.

POWER SYSTEM ECONOMICS 70

Load factor regarding energy,

Depending on the number of hours in days, weeks, months, or years we

define different load factors.

For daily load factor, period T is taken as 24 hours;

similarly, for weeks, months and years the different value of T is taken.

POWER SYSTEM ECONOMICS 71

POWER SYSTEM ECONOMICS 72
CURVES USED IN
POWER SYSTEM OPERATION

POWER SYSTEM ECONOMICS 73

1. LOAD CURVES

Definition:
The Load Curve is defined as the curve which is drawn between loads
versus time in sequential order. We have to draw the load curve on daily
basis data, weekly, monthly basis data.
Or
The curves showing the variation of load on the power station with
respect to time is known as load Curves.

The load on a power station is never

constant; it varies from time to time.

POWER SYSTEM ECONOMICS 74

1. LOAD CURVES

 The load variations during the whole day (i.e., 24 hours) are recorded half-hourly or hourly and
are plotted against time on the graph. The curve thus obtained is known as daily load curve as it
shows the variations of load w.r.t. time during the day.

 Fig. shows a typical daily load curve of a power station.

 It is clear that load on the power station is varying, being maximum at 6 P.M. in this case.
 It may be seen that load curve indicates at a glance the general character of the load that is being
imposed on the plant. Such a clear representation cannot be obtained from tabulated figures.

POWER SYSTEM ECONOMICS 75

1. LOAD CURVES

The monthly load curve can be obtained from the daily load
curves of that month.
For this purpose, average values of power over a month at
different times of the day are calculated and then plotted on
the graph.
The monthly load curve is generally used to fix the rates of
energy.

The yearly load curve is obtained by considering the

monthly load curves of that particular year.
The yearly load curve is generally used to determine the
annual load factor.
POWER SYSTEM ECONOMICS 76
The Load Curve gives following Information:

 The daily load curve shows the

variation of load on the power station
during different hours of the day.

 The area under the daily load curve

gives the number of unit generated in
the day.

Unit generated/day= Area (in kWh) under daily load curve.

 The highest point on the daily load curve represents the maximum demand on the
station on that day.

POWER SYSTEM ECONOMICS 77

The Load Curve gives following Information:

The area under the daily load

curve divided by the total
number of hours gives the
average load on the station in
that day.

 The ratio of the area under the load curve to the total area of the rectangle in which
it is contained gives the load factor.

POWER SYSTEM ECONOMICS 78

The Load Curve gives following Information:

 The load curve helps in selecting the size and number of

generating units.

 The load curve helps in preparing the operation schedule of the

station.

POWER SYSTEM ECONOMICS 79

2. LOAD DURATION CURVE
Definition:
When the load elements of a load curve are arranged in the order of
descending magnitudes, the curve thus obtained is called a load
duration curve.

 The load duration curve is obtained from the same data as load curve

POWER SYSTEM ECONOMICS 80

2. LOAD DURATION CURVE
 The load duration curve is obtained from the same data as the load curve
but the ordinates are arranged in the order of descending magnitudes.

 In other words, the maximum load is represented to the left and

decreasing loads are represented to the right in the descending order.

 Hence the area under the load

duration curve and the area under
the load curve are equal

POWER SYSTEM ECONOMICS 81

From the above figure (i) shows the daily load curve, the daily load duration
curve can be readily obtained from it.

From fig (ii), it is clear from the daily load duration curve that the
magnitudes of load elements are in descending order. The magnitudes are
20MW for 8 Hours, 15MW for 4 hours & remaining 5 MW from 12 hours.

Plotting these loads in order of descending magnitude, we get Daily Load

Duration Curve. (Shown in Fig. ii)
POWER SYSTEM ECONOMICS 82
The Load Duration Curve gives following
information

 The load duration curve readily shows the number of

hours during which the given load has prevailed.
 The area under daily load duration curve (in kWh) will
give the units generated on that day.
 The load duration curve, which helps to give information
about annual load duration curve.
 The load duration curve can be extended to include any
period of time.
POWER SYSTEM ECONOMICS 83
3. Integrated Duration Curve

Definition: The curve which represents the total number of units generated
for the given demand is called as Integrated Load Curve.

The Figure shows

the Integrated
Duration Curve,

its X-axis represents

units generated in
kWh &

Y-axis represents
Demand of load in
kW.

POWER SYSTEM ECONOMICS 84

LOAD DURATION CURVE

 Consider Fig. B, let the demand of load can

be represented at point A & it corresponds to
line AG (Refer Fig. A) on the load duration
curve.

 The number of unit generated (P1)

corresponding to this load demand are
represented by area OAGF, it corresponds to
point P1 on integrated duration curve.

 Consider Fig B, let the demand of load can be

represented at point B & it corresponds to line
BH (Refer Fig. A) on the load duration curve.

 The number of unit generated (P2) corresponding to this load demand are
represented by area OAHF, it corresponds to point P2 on integrated duration curve.
 Similarly, all the above mentioned sequence will help to draw Integrated Duration
Curve.

POWER SYSTEM ECONOMICS 85

TYPES OF LOADS

 A device which taps electrical energy from the electric power system is called a load
on the system.

 The load may be resistive (e.g., electric lamp), inductive (e.g., induction motor), capacitive or
some combination of them.

 The various types of loads on the power system are :

Domestic load
Commercial load
Industrial load
Municipal load
Irrigation load
Traction load
POWER SYSTEM ECONOMICS 86
 DOMESTIC LOAD

 Domestic load consists of lights, fans, refrigerators, heaters, television, small motors for pumping
water etc.
 Most of the residential load occurs only for some hours during the day (i.e., 24 hours) e.g.,
lighting load occurs during night time and domestic appliance load occurs for only a few hours.
 For this reason, the load factor is low (10% to 12%).

COMMERCIAL LOAD.
 Commercial load consists of lighting for shops, fans and electric appliances used in
restaurants etc.
 This class of load occurs for more hours during the day as compared to the domestic load.
 The commercial load has seasonal variations due to the extensive use of air-conditioners and
space heaters

POWER SYSTEM ECONOMICS 87

INDUSTRIAL LOAD

 Industrial load consists of load demand by industries.

 The magnitude of industrial load depends upon the type of industry.
 Thus small scale industry requires load upto 25 kW, medium scale industry between 25kW
and 100 kW and large-scale industry requires load above 500 kW.
 Industrial loads are generally not weather dependent

MUNICIPAL LOAD
 Municipal load consists of street lighting, power required for water supply and drainage
purposes.
 Street lighting load is practically constant throughout the hours of the night.
 For water supply, water is pumped to overhead tanks by pumps driven by electric motors.
 Pumping is carried out during the off-peak period, usually occurring during the night. This
helps to improve the load factor of the power system.

POWER SYSTEM ECONOMICS 88

IRRIGATION LOAD

 This type of load is the electric power needed for pumps driven by motors to supply water
to fields.
 Generally this type of load is supplied for 12 hours during night

TRACTION LOAD
 This type of load includes tram cars, trolley buses, railways etc.
 This class of load has wide variation.
 During the morning hour, it reaches peak value because people have to go to their work
place.
 After morning hours, the load starts decreasing and again rises during evening since the
people start coming to their homes

POWER SYSTEM ECONOMICS 89

BASE LOAD AND PEAK LOAD ON POWER STATION

 The changing load on the power station makes its load curve of variable nature.
 Fig. shows the typical load curve of a power station.
 It is clear that load on the power station varies from time to time.
 However, a close look at the load curve reveals that load on the power station can be
considered in two parts, namely;

 Base load
 Peak load

POWER SYSTEM ECONOMICS 90

BASE LOAD ON POWER STATION

The unvarying load which occurs almost the whole day on the station is
known as base load.

 Referring to the load curve of Fig., it is clear that 20

MW of load has to be supplied by the station at all
times of day and night i.e. throughout 24 hours.
 Therefore, 20 MW is the base load of the station.
 As base load on the station is almost of constant
nature, therefore, it can be suitably supplied without
facing the problems of variable load.

POWER SYSTEM ECONOMICS 91

PEAK LOAD ON POWER STATION

 The various peak demands of load over and above the base load of
the station is known as peak load.

 Referring to the load curve of Fig., it is

clear that there are peak demands of load
excluding base load.

 These peak demands of the station

generally form a small part of the total
load and may occur throughout the day.

POWER SYSTEM ECONOMICS 92

METHOD OF MEETING THE LOAD

The total load on a power station consists of two parts viz., base load
and peak load.
In order to achieve overall economy, the best method to meet load is
to interconnect two different power stations.
The more efficient plant is used to supply the base load and is known as
base load power station.
The less efficient plant is used to supply the peak loads and is known as
peak load power station.
There is no hard and fast rule for selection of base load and peak load
stations as it would depend upon the particular situation.
For example, both hydro-electric and steam power stations are quite
efficient and can be used as base load as well as peak load station to
meet a particular load requirement

POWER SYSTEM ECONOMICS 93

METHOD OF MEETING THE LOAD

 The interconnection of steam and hydro plants is a beautiful illustration to meet

the load.

 When water is available in sufficient quantity as in summer and rainy season, the
hydroelectric plant is used to carry the base load and the steam plant supplies the peak
load as shown in Fig (i).

 However, when the water is not available in sufficient quantity as in winter, the steam plant
carries the base load, whereas the hydro-electric plant carries the peak load as shown in
Fig. (ii).

POWER SYSTEM ECONOMICS 94

INTERCONNECTED GRID SYSTEM

The connection of several generating stations in parallel is known as

interconnected grid system.

The various problems facing the power engineers are considerably

reduced by interconnecting different power stations in parallel.

Although interconnection of station involves extra cost, yet considering

the benefits derived from such an arrangement, it is gaining much favor
these days.

Some of the advantages of interconnected system are listed

POWER SYSTEM ECONOMICS 95

 ADVANTAGES OF INTERCONNECTED SYSTEM

 Exchange of peak loads :

An important advantage of interconnected system is that the peak load of the power station can
be exchanged. If the load curve of a power station shows a peak demand that is greater than the
rated capacity of the plant, then the excess load can be shared by other stations interconnected
with it.

 Use of older plants :

The interconnected system makes it possible to use the older and less efficient plants to carry
peak loads of short durations. Although such plants may be inadequate when used alone, yet
they have sufficient capacity to carry short peaks of loads when interconnected with other
modern plants. Therefore, interconnected system gives a direct key to the use of obsolete plants

 Ensures economical operation :

The interconnected system makes the operation of concerned power stations quite
economical. It is because sharing of load among the stations is arranged in such a way that
more efficient stations work continuously throughout the year at a high load factor and the
less efficient plants work for peak load hours only

POWER SYSTEM ECONOMICS 96

 ADVANTAGES OF INTERCONNECTED SYSTEM

 Increases diversity factor :

The load curves of different interconnected stations are generally different. The result is
that the maximum demand on the system is much reduced as compared to the sum of
individual maximum demands on different stations. In other words, the diversity factor of
the system is improved, thereby increasing the effective capacity of the system.

 Reduces plant reserve capacity :

Every power station is required to have a standby unit for emergencies. However, when
several power stations are connected in parallel, the reserve capacity of the system is
much reduced. This increases the efficiency of the system.

 Increases reliability of supply :

The interconnected system increases the reliability of supply. If a major breakdown occurs
in one station, continuity of supply can be maintained by other healthy stations.

POWER SYSTEM ECONOMICS 97

IMPORTANCE OF HIGH LOAD FACTOR

 The load factor plays a vital role in determining the cost of energy.

 Some important advantages of high load factor are listed below :

 Reduces cost per unit generated :

 A high load factor reduces the overall cost per unit generated.
 The higher the load factor, the lower is the generation cost.
 It is because higher load factor means that for a given maximum demand, the
number of units generated is more.
 This reduces the cost of generation.

 Reduces variable load problems :

 A high load factor reduces the variable load problems on the power station.
 A higher load factor means comparatively less variations in the load demands at
various times.
 This avoids the frequent use of regulating devices installed to meet the variable
load on the station.

POWER SYSTEM ECONOMICS 98

A Generating Station has the Following Daily Load Cycle:

POWER SYSTEM ECONOMICS 99

Solution:

Draw the Load Curve:

With reference to the given data in the above table, we draw the load
curve.

For this purpose we take shows on X-axis Time & Y-Axis Load.

There are total 24 hours of the day, for X-Axis it is divided into TWO
hours & load is in increasing order of 10 on Y-Axis.
POWER SYSTEM ECONOMICS 100
Maximum Demand: From the above curve it is clear that, the maximum
load is 70 MW.

Unit Generated per Annum: = Area (in kWh) under the daily load curve.

POWER SYSTEM ECONOMICS 101

POWER SYSTEM ECONOMICS 102
10.A Power Station has the Following Daily Load
Cycle:

POWER SYSTEM ECONOMICS 103

POWER SYSTEM ECONOMICS 104
 Energy Generated per Day
= Area (in kWh) under daily load
or load duration curve = [(60 x 4)
+ (50 x 4) + (40 x 4) + (20 x 12)] x
103 = 840 x 103 kWh

POWER SYSTEM ECONOMICS 105

• Example for Practice:

• The peak load on power station is 40 MW. The loads having maximum
demands of 30 MW, 5MW, 8MW are connected to power station. The
annual load factor is 50%. Find: Average load on Power Station,
Demand Factor, diversity Factor & Load Factor

POWER SYSTEM ECONOMICS 106

EXAMPLE FOR PRACTICE:

A GENERATING STATION HAS THE FOLLOWING DAILY

LOAD CYCLE:

PLOT THE LOAD CURVE & LOAD DURATION CURVE.

CALCULATE THE ENERGY GENERATED PER DAY.

POWER SYSTEM ECONOMICS 107

 POWER SYSTEM TARIFFS

 Use electrical energy if it is sold at reasonable rates.

 The tariff i.e., the rate at which electrical energy is sold naturally becomes

attention inviting for electric supply company.

 Tariff is such that it not only recovers the total cost of producing electrical energy

but also earns profit on the capital investment.

 The rate at which electrical energy is supplied to a consumer is known as

tariff.

POWER SYSTEM ECONOMICS 108

 OBJECTIVES OF TARIFF

It cannot be the same for all types of consumers.

Upon the magnitude of electrical energy consumed by the user and his load
conditions.
Objectives of tariff.
(i) Recovery of cost of producing electrical energy at the power station.
(ii) Recovery of cost on the capital investment in transmission and distribution
systems.
(iii) Recovery of cost of operation and maintenance of supply of electrical energy
e.g., metering equipment, billing etc.
(iv) A suitable profit on the capital investment.

POWER SYSTEM ECONOMICS 109

 DESIRABLE CHARACTERISTICS OF A TARIFF

(i) Proper return

• total receipts from the consumers must be equal to the cost of producing
and supplying electrical energy plus reasonable profit.
• enable the electric supply company to ensure continuous and reliable
service to the consumers

(ii) Fairness
• so that different types of consumers are satisfied
• big consumer should be charged at a lower rate than a small consumer.
• consumer whose load conditions do not deviate much from the ideal (i.e.,
nonvariable) should be charged at a lower* rate than the one whose load
conditions change appreciably from the ideal.

POWER SYSTEM ECONOMICS 110

iii. Simplicity

• should be simple so that an ordinary consumer can easily understand it.

iv. Reasonable profit

• profit to be restricted to 8% or so per annum.

v. Attractive

• large number of consumers are encouraged to use electrical energy.

POWER SYSTEM ECONOMICS 111

TYPES OF TARIFF

1. Simple tariff

2. Flat rate tariff

3. Block rate tariff

4. Two-part tariff

5. Maximum demand tariff

6. Power factor tariff

7. Three-part tariff

POWER SYSTEM ECONOMICS 112

1. SIMPLE TARIFF

• There is a fixed rate per unit of energy consumed.

• it does not vary with increase or decrease in number of units consumed.

Disadvantages

(i) There is no discrimination between different types of consumers since every

consumer has to pay equitably for the fixed charges.

(ii) The cost per unit delivered is high.

(iii) It does not encourage the use of electricity.

POWER SYSTEM ECONOMICS 113

2. FLAT RATE TARIFF

• different types of consumers are charged at different uniform per unit rates.

• For instance, the flat rate per kWh for lighting load may be 60 paisa, whereas it

may be slightly less† (say 55 paisa per kWh) for power load.

Disadvantages

(i) Separate meters are required for lighting load, power load etc. This makes the

application of such a tariff expensive and complicated.

(ii) A particular class of consumers is charged at the same rate irrespective of the

magnitude of energy consumed.

POWER SYSTEM ECONOMICS 114

3. BLOCK RATE TARIFF

• given block of energy is charged at a specified rate and the succeeding

blocks of energy are charged at progressively reduced rates.
• For example, the first 30 units may be charged at the rate of 60 paisa per unit
; the next 25 units at the rate of 55 paisa per unit and the remaining
additional units may be charged, at the rate of 30 paisa per unit.
Advantage
• Consumer gets an incentive to consume more electrical energy.
• This increases the load factor of the system and hence the cost of generation
is reduced.
Disadvantages
(i) lacks a measure of the consumer’s demand..

POWER SYSTEM ECONOMICS 115

4. TWO-PART TARIFF
• rate of electrical energy is charged on the basis of maximum demand of the
consumer and the units consumed.
• the total charge to be made from the consumer is split into two components viz.,
fixed charges and running charges.
• The fixed charges depend upon the maximum demand of the consumer while the
running charges depend upon the number of units consumed by the consumer.
• The maximum demand of consumer is generally assessed on the basis of rateable
value of the premises or on the number of rooms or on the connected load.
Total charges = Rs (b × kW + c × kWh)
where, b = charge per kW of maximum demand
c = charge per kWh of energy consumed
This type of tariff is mostly applicable to industrial consumers who have appreciable
maximum demand.

POWER SYSTEM ECONOMICS 116

4. TWO-PART TARIFF

Advantages
(i) It is easily understood by the consumers.
(ii) It recovers the fixed charges which depend upon the maximum demand of the
consumer but are independent of the units consumed.
Disadvantages
(i) The consumer has to pay the fixed charges irrespective of the fact whether he has
consumed or not consumed the electrical energy.
(ii) There is always error in assessing the maximum demand of the consumer.

POWER SYSTEM ECONOMICS 117

5. MAXIMUM DEMAND TRAIFF

• Similar to two-part tariff with the only difference that the maximum demand is
actually measured by installing maximum demand meter in the premises of the
consumer.
• removes the objection of two-part tariff where the maximum demand is
assessed merely on the basis of the rateable value.
• type of tariff is mostly applied to big consumers. However, it is not suitable for
a small consumer (e.g., residential consumer) as a separate maximum demand
meter is required.

POWER SYSTEM ECONOMICS 118

6. POWER FACTOR TRAIFF
• tariff in which power factor of the consumer’s load is taken into
consideration.
• A low power factor increases the rating of station equipment and line losses.
(i) k VA maximum demand tariff :
• This type of tariff has the advantage that it encourages the consumers to
operate their appliances and machinery at improved power factor.
(ii) Sliding scale tariff :
• In this case, an average power factor, say 0·8 lagging, is taken as the
reference. If the power factor of the consumer falls below this factor, suitable
additional charges are made. On the other hand, if the power factor is above
the reference, a discount is allowed to the consumer.
POWER SYSTEM ECONOMICS 119
6. POWER FACTOR TRAIFF

(iii) kW and kVAR tariff :

In this type, both active power (kW) and reactive power (kVAR) supplied are charged

separately. A consumer having low power factor will draw more reactive power and

hence shall have to pay more charges.

POWER SYSTEM ECONOMICS 120

7. THREE-PART TARIFF

• Total charge to be made from the consumer is split into three parts viz., fixed
charge, semi-fixed charge and running charge.

Total charge = Rs (a + b × kW + c × kWh)

where a = fixed charge made during each billing period. It includes interest and
depreciation on the cost of secondary distribution and labour cost of collecting
revenues,
b = charge per kW of maximum demand,
c = charge per kWh of energy consumed.

• It may be seen that by adding fixed charge or consumer’s charge (i.e., a) to

two-part tariff, it becomes three-part tariff.
• type of tariff is generally applied to big consumers.

POWER SYSTEM ECONOMICS 121

Example 1. A consumer has a maximum demand of 200 kW at 40% load factor. If
the tariff is Rs. 100 per kW of maximum demand plus 10 paise per kWh, find the
overall cost per kWh.

Solution.

Units consumed/year = Max. demand × L.F. × Hours in a year

= (200) × (0·4) × 8760 = 7,00,800 kWh
Annual charges = Annual M.D. charges + Annual energy charges
= Rs (100 × 200 + 0·1 × 7,00,800)
= Rs 90,080
∴ Overall cost/kWh = Rs 90,080 / 7,00,800
= Re 0·1285 = 12·85 paise

POWER SYSTEM ECONOMICS 122

Example 2. The maximum demand of a consumer is 20 A at 220 V and his total
energy consumption is 8760 kWh. If the energy is charged at the rate of 20 paise
per unit for 500 hours use of the maximum demand per annum plus 10 paise per
unit for additional units, calculate : (i) annual bill (ii) equivalent flat rate.

Solution.
Assume the load factor and power factor to be unity.
∴ Maximum demand = (220 X 20 X 1) / 1000 = 4. 4 kW
(i) Units consumed in 500 hrs = 4·4 × 500 = 2200 kWh
Charges for 2200 kWh = Rs 0·2 × 2200 = Rs 440
Remaining units = 8760 − 2200 = 6560 kWh
Charges for 6560 kWh = Rs 0·1 × 6560 = Rs 656
∴ Total annual bill = Rs (440 + 656) = Rs. 1096
(ii) Equivalent flat rate = Rs 1096 / 8760
= Re 0 ⋅125 = 12.5 paise

POWER SYSTEM ECONOMICS 123

1. The maximum demand on power station is 100 MW. If the annual
load factor is 40%, calculate the total energy generated in a year.

POWER SYSTEM ECONOMICS 124

POWER SYSTEM ECONOMICS 125
2:. A generating station has a connected load 120MW & it supplies maximum demand
60 MW. The numbers of units generated in a year are 48 X 107 Calculate load &
demand factor of generating station.

POWER SYSTEM ECONOMICS 126

POWER SYSTEM ECONOMICS 127
THANK YOU...

POWER SYSTEM ECONOMICS 128