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Power Plant Economics and Variable Load Problem

TERMS AND FACTORS

The main terms and factors are as follows:

1. Load Factor
It is defined as the ratio of the average load to the peak load during a certain prescribed period of
time. The load factor of a power plant should be high so that the total capacity of the plant is
utilized for the maximum period that will result in lower cost of the electricity being generated. It
is always less than unity.
High load factor is a desirable quality. Higher load factor means greater average load, resulting in
greater number of power units generated for a given maximum demand. Thus, the fixed cost, which
is proportional to the maximum demand, can be distributed over a greater number of units (kWh)
supplied. This will lower the overall cost of the supply of electric energy.

2. Utility Factor
It is the ratio of the units of electricity generated per year to the capacity of the plant installed in
the station. It can also be defined as the ratio of maximum demand of a plant to the rated capacity
of the plant.

Supposing the rated capacity of a plant is 200 mW. The maximum load on the plant is 100 mW at
load factor of 80 per cent, then the utility will be = (100 × 0.8)/(200) = 40%

3. Plant Operating Factor

It is the ratio of the duration during which the plant is in actual service, to the total duration of the
period of time considered.

4. Plant Capacity Factor

It is the ratio of the average loads on a machine or equipment to the rating of the machine or
equipment, for a certain period of time considered. Since the load and diversity factors are not
involved with ‘reserve capacity’ of the power plant, a factor is needed which will measure the
reserve, likewise the degree of utilization of the installed equipment. For this, the factor “Plant
factor, Capacity factor or Plant Capacity factor” is defined as,

Plant Capacity Factor = (Actual kWh Produced)/(Maximum Possible Energy that might have
produced during the same period)

Thus the annual plant capacity factor will be, = (Annual kWh produced)/[Plant capacity (kW) ×
hours of the year.
The difference between load and capacity factors is an indication of reserve capacity.

5. Demand Factor
The actual maximum demand of a consumer is always less than his connected load since all the
appliances in his residence will not be in operation at the same time or to their fullest extent. This

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ratio of' the maximum demand of a system to its connected load is termed as demand factor. It is
always less than unity.

6. Diversity Factor
Supposing there is a group of consumers. It is known from experience that the maximum demands
of the individual consumers will not occur at one time. The ratio of the sum of the individual
maximum demands to the maximum demand of the total group is known as diversity factor. It is
always greater than unity.
High diversity factor (which is always greater than unity) is also a desirable quality. With a given
number of consumers, higher the value of diversity factor, lower will be the maximum demand on
the plant, since,

Diversity factor = Sum of the individual maximum Demands/Maximum demand of the total group

So, the capacity of the plant will be smaller, resulting in fixed charges.

7. Load Curve
It is a curve showing the variation of power with time. It shows the value of a specific load for
each unit of the period covered. The unit of time considered may be hour, days, weeks, months or
years.

8. Load Duration Curve

It is the curve for a plant showing the total time within a specified period, during which the load
equaled or exceeded the values shown.

9. Dump Power
This term is used in hydro plants and it shows the power in excess of the load requirements and it
is made available by surplus water.

10. Firm Power

It is the power, which should always be available even under emergency conditions.

11. Prime Power

It is power, may be mechanical, hydraulic or thermal that is always available for conversion into
electric power.

12. Cold Reserve

It is that reserve generating capacity which is not in operation but can be made available for service.

13. Hot Reserve

It is that reserve generating capacity which is in operation but not in service.

14. Spinning Reserve

It is that reserve generating capacity which is connected to the bus and is ready to take the load.

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15. Plant Use Factor

This is a modification of Plant Capacity factor in that only the actual number of hours that the plant
was in operation is used. Thus Annual Plant Use factor is, = (Annual kWh produced) / [Plant
capacity (kW) × number of hours of plant operation]

FACTOR EFFECTING POWER PLANT DESIGN

Following are the factor effecting while designing a power plant.

(1) Location of power plant
(2) Availability of water in power plant
(3) Availability of labour nearer to power plant
(4) Land cost of power plant
(5) Low operating cost
(6) Low maintenance cost
(7) Low cost of energy generation
(8) Low capital cost

EFFECT OF POWER PLANT TYPE ON COSTS

The cost of a power plant depends upon, when a new power plant is to set up or an existing plant
is to be replaced or plant to be extended. The cost analysis includes

1. Fixed Cost
It includes Initial cost of the plant, Rate of interest, Depreciation cost, Taxes, and Insurance.

2. Operational Cost
It includes Fuel cost, Operating labour cost, Maintenance cost, Supplies, Supervision, Operating
taxes.

INITIAL COST
The initial cost of a power station includes the following:
1. Land cost
2. Building cost
3. Equipment cost
4. Installation cost
5. Overhead charges, which will include the transportation cost, stores and storekeeping charges,
interest during construction etc.

To reduce the cost of building, it is desirable to eliminate the superstructure over the boiler house
and as far as possible on turbine house also. Adopting unit system where one boiler is used for one
turbo-generator can reduce the cost on equipment. Also by simplifying the piping system and
elimination of duplicate system such as steam headers and boiler feed headers. Eliminating
duplicate or stand-by auxiliaries can further reduce the cost.
When the power plant is not situated in the proximity to the load served, the cost of a primary
distribution system will be a part of the initial investment.

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RATE OF INTEREST

All enterprises need investment of money and this money may be obtained as loan, through bonds
and shares or from owners of personal funds. Interest is the difference between money borrowed
and money returned. It may be charged at a simple rate expressed as % per annum or may be
compounded, in which case the interest is reinvested and adds to the principal, thereby earning
more interest in subsequent years. Even if the owner invests his own capital the charge of interest
is necessary to cover
the income that he would have derived from it through an alternative investment or fixed deposit
with a bank. Amortization in the periodic repayment of the principal as a uniform annual expense.

DEPRECIATION

Depreciation accounts for the deterioration of the equipment and decrease in its value due to
corrosion, weathering and wear and tear with use. It also covers the decrease in value of equipment
due to obsolescence. With rapid improvements in design and construction of plants, obsolescence
factor is of enormous 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.

The following methods are used to calculate the depreciation cost:

(1) Straight line method
(2) Percentage method
(3) Sinking fund method
(4) Unit method.

Straight Line Method. It is the simplest and commonly used method. The life of the equipment
or the enterprise is first assessed as also the residual or salvage value of the same after the estimated
life span. This salvage value is deducted from the initial capital cost and the balance is divided by
the life as assessed in years. Thus, the annual value of decrease in cost of equipment is found and
is set aside as depreciation annually from the income. Thus, the rate of depreciation is uniform
throughout the life of the equipment. By the time the equipment has lived out its useful life, an
amount equivalent to its net cost is accumulated which can be utilized for replacement of the plant.

Percentage Method. In this method the deterioration in value of equipment from year to year is
taken into account and the amount of depreciation calculated upon actual residual value for each
year. It thus, reduces for successive years.

Sinking Fund Method. This method is based on the conception that the annual uniform deduction
from income for depreciation will accumulate to the capital value of the plant at the end of life of
the plant or equipment. In this method, the amount set aside per year consists of annual installments
and the interest earned on all the installments.

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EXAMPLE PROBLEMS

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 = Php 208 per ton

Solution:
𝜂 = 𝑇ℎ𝑒𝑟𝑚𝑎𝑙 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = (𝐵𝑜𝑖𝑙𝑒𝑟 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 )(𝑇ℎ𝑒𝑟𝑚𝑎𝑙 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦)

𝜼 = (𝟎. 𝟗𝟐)(𝟎. 𝟗𝟎) = 𝟎. 𝟖𝟑

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑
𝐿𝑜𝑎𝑑 𝐹𝑎𝑐𝑡𝑜𝑟 =
𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑 = (𝐿𝑜𝑎𝑑 𝐹𝑎𝑐𝑡𝑜𝑟 )(𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑) = (0.4 )(24,000) = 9600𝐾𝑊

𝐸 = 𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 = (𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑 )(𝐻𝑜𝑢𝑟𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟)

24 ℎ𝑜𝑢𝑟𝑠
𝐻𝑜𝑢𝑟𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 = (365 𝑑𝑎𝑦𝑠) ( ) = 8760 ℎ𝑜𝑢𝑟𝑠
𝑑𝑎𝑦

𝐸 = 𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 = (9,600 𝐾𝑊 )(8760 ℎ𝑜𝑢𝑟𝑠)

𝐸 = 84,096,000 𝐾𝑊ℎ

𝐶𝑜𝑠𝑡 𝑜𝑓 𝐶𝑜𝑎𝑙 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟 = (𝐸 )(𝐶𝑜𝑎𝑙 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)( 𝐶𝑜𝑎𝑙 𝑃𝑟𝑖𝑐𝑒)

𝐾𝑔 𝑃ℎ𝑝 1 𝑡𝑜𝑛
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐶𝑜𝑎𝑙 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟 = (84,096,000 𝐾𝑊ℎ ) (0.87 ) (208 )( )
𝑈𝑛𝑖𝑡 𝑇𝑜𝑛 1000𝐾𝑔

𝑪𝒐𝒔𝒕 𝒐𝒇 𝑪𝒐𝒂𝒍 𝒑𝒆𝒓 𝒚𝒆𝒂𝒓 = 𝑷𝒉𝒑 𝟏𝟓, 𝟐𝟏𝟖, 𝟎𝟏𝟐. 𝟏𝟔

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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:
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑
a. 𝐿𝑜𝑎𝑑 𝐹𝑎𝑐𝑡𝑜𝑟 = 𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑 = (𝐿𝑜𝑎𝑑 𝐹𝑎𝑐𝑡𝑜𝑟 )(𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑)

𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑳𝒐𝒂𝒅 = (𝟎. 𝟓)(𝟓𝟎𝑴𝑾) = 𝟐𝟓𝑴𝑾

b. 𝐸 = 𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 = (𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑 )(𝐻𝑜𝑢𝑟𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟)

1000𝐾𝑊
𝐸 = 𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 = (25𝑀𝑊 )(8760) ( )
1𝑀𝑊

𝑬 = 𝟐𝟏𝟗, 𝟎𝟎𝟎, 𝟎𝟎𝟎 𝑲𝑾𝒉

𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑
c. 𝐷𝑒𝑚𝑎𝑛𝑑 𝐹𝑎𝑐𝑡𝑜𝑟 = 𝐶𝑜𝑛𝑛𝑒𝑐𝑡𝑒𝑑 𝐿𝑜𝑎𝑑

𝟓𝟎𝑴𝑾
𝑫𝒆𝒎𝒂𝒏𝒅 𝑭𝒂𝒄𝒕𝒐𝒓 = = 𝟎. 𝟖𝟔
(𝟐𝟓 + 𝟐𝟎 + 𝟖 + 𝟓)𝑴𝑾

𝑆𝑢𝑚 𝑜𝑓 𝐼𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑

d. 𝐷𝑖𝑣𝑒𝑟𝑠𝑖𝑡𝑦 𝐹𝑎𝑐𝑡𝑜𝑟 = 𝑆𝑖𝑚𝑢𝑙𝑡𝑎𝑛𝑒𝑜𝑢𝑠 𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑

(𝟐𝟓 + 𝟐𝟎 + 𝟖 + 𝟓)𝑴𝑾
𝑫𝒊𝒗𝒆𝒓𝒔𝒊𝒕𝒚 𝑭𝒂𝒄𝒕𝒐𝒓 = = 𝟏. 16
𝑺𝟓𝟎𝑴𝑾

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Example 3.
In a steam powerplant the capital cost of power generation equipment is Php 1,850,000.
The useful life of the plant is 30 years and salvage value of the plant to Php 75,000. De-
termine by sinking fund method the amount to be saved annually for replacement if the
rate of annual compound interest is 6%.

Solution:

Given:
𝑃 = 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝑃ℎ𝑝 1,850,000
𝑆 = 𝑆𝑎𝑙𝑣𝑎𝑔𝑒 𝑉𝑎𝑙𝑢𝑒 = 𝑃ℎ𝑝 75,000
𝑛 = 𝑈𝑠𝑒𝑓𝑢𝑙 𝐿𝑖𝑓𝑒 = 30 𝑦𝑒𝑎𝑟𝑠
𝑟 = 𝐶𝑜𝑚𝑝𝑜𝑢𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 6%
𝐴 = 𝐴𝑚𝑜𝑢𝑛𝑡 𝑡𝑜 𝑏𝑒 𝑠𝑎𝑣𝑒𝑑 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟 𝑓𝑜𝑟 𝑟𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡

Recall Depreciation Formula;

[(𝑃 − 𝑆)𝑟]
𝐴=
[(1 + 𝑟)𝑛 − 1]

[(1,850,000 − 75,000)0.06]
𝐴=
[(1 + 0.06)30 − 1]

𝑨 = 𝑷𝒉𝒑 𝟐𝟐, 𝟒𝟓𝟏. 𝟕𝟕𝟓

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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
demand. If the plant capacity factor is 24% find reserve capacity of the plant.

Solution:

𝐸 = 750 × 105 kWh = 𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑎𝑟𝑡𝑒𝑑

𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 750 × 105 kWh

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑 = =
𝐻𝑜𝑢𝑟𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 8760 ℎ𝑜𝑢𝑟𝑠

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑 = 8,560 𝐾𝑊

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑
𝐿𝑜𝑎𝑑 𝐹𝑎𝑐𝑡𝑜𝑟 = = 0.3
𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑 8560 𝐾𝑊

𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑 = =
𝐿𝑜𝑎𝑑 𝐹𝑎𝑐𝑡𝑜𝑟 0.3

𝑴𝒂𝒙𝒊𝒎𝒖𝒎 𝑫𝒆𝒎𝒂𝒏𝒅 = 𝟐𝟖, 𝟓𝟑𝟖. 𝟖𝟏 𝑲𝑾

𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟

𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝐹𝑎𝑐𝑡𝑜𝑟 = = 0.24
(𝑃𝑙𝑎𝑛𝑡 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦) (𝐻𝑜𝑢𝑟𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟)

𝑅𝑒𝑠𝑒𝑟𝑣𝑒𝑑 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = 𝑃𝑙𝑎𝑛𝑡 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 − 𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝐷𝑒𝑚𝑎𝑛𝑑

𝐸𝑛𝑒𝑟𝑔𝑦 𝐺𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟 750 × 105 kWh

𝑃𝑙𝑎𝑛𝑡 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = =
(𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝐹𝑎𝑐𝑡𝑜𝑟) (𝐻𝑜𝑢𝑟𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟) 0.24 (8760 ℎ𝑜𝑢𝑟𝑠)

𝑃𝑙𝑎𝑛𝑡 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = 35,673.52 𝐾𝑊

𝑹𝒆𝒔𝒆𝒓𝒗𝒆𝒅 𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 = 𝟑𝟓, 𝟔𝟕𝟑. 𝟓𝟐 𝑲𝑾 − 𝟐𝟖, 𝟓𝟑𝟖. 𝟖𝟏 𝑲𝑾 = 𝟕, 𝟏𝟑𝟒. 𝟕 𝑲𝑾

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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:

𝑂𝑢𝑡𝑝𝑢𝑡
𝑂𝑣𝑒𝑟𝑎𝑙𝑙 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
𝐼𝑛𝑝𝑢𝑡

𝑂𝑢𝑡𝑝𝑢𝑡 (ℎ𝑒𝑎𝑡) = 1 𝐾𝑊ℎ

𝐾𝑔 𝐾𝑐𝑎𝑙 𝐾𝑐𝑎𝑙
𝐼𝑛𝑝𝑢𝑡 (𝐻𝑒𝑎𝑡) = 𝑚𝑓 𝐻𝐻𝑉 = 0.2 (11,000 ) = 2,200
𝐾𝑊ℎ 𝐾𝑔 𝐾𝑊ℎ

Note:
1 𝐾𝑊ℎ = 862 𝐾𝑐𝑎𝑙

𝐾𝑐𝑎𝑙
862
𝑂𝑣𝑒𝑟𝑎𝑙𝑙 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 𝐾𝑊ℎ
𝐾𝑐𝑎𝑙
2,200
𝐾𝑊ℎ

𝑶𝒗𝒆𝒓𝒂𝒍𝒍 𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚 = 𝟎. 𝟑𝟗𝟏𝟖 = 𝟑𝟗. 𝟏𝟖%

GPGINES
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PROBLEM SET (Week 14 Activities)

1. 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
Php 60 per tonne. The annual expenses on salary bill of staff and other overhead
charges excluding cost of coal are Php 3,800,000. The power station works at a load
factor of 0.5 and the capital cost of the power station is Php 300,000. If the rate of
interest and depreciation is 10% determine the cost of generating per kWh.

2. Any undertaking consumes 6 × 106 kWh per year and its maximum demand is
2000 kW. It is offered two tariffs.
(a) Php 60 per kW of maximum demand plus 3 cents per kWh.
(b) A flat rate of 6 cents per kWh.
Calculate the annual cost of energy.

3. Two lamps are to be compared:

(a) Cost of first lamp is Php 0.75 and it takes 100 watts.
(b) Cost of second lamp is Php 3 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 Php 52 per kW of maximum
demand per year plus 5 cents per kWh? At what load factor both the lamps will be
equally advantageous?

4. 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 Php 30 per kW of maximum demand plus 2 cents
per kWh.
Capital cost = Php 52,000
Interest and depreciation = 10%
(b) Private oil engine generating station.
Capital Cost = Php 185,000
Fuel consumption = 0.3 kg per kWh
Cost of fuel = Php 50 per tonne
Wages = 0.4 cents per kWh
Maintenance cost = 0.3 cents per kWh
Interest and depreciation = 15%.
Note:
1. Solutions to the above problems should be neat and hand written in a long bond paper.
2. Date of submission is on the last day of each scheduled class.

GPGINES
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THEORETICAL QUESTIONS (Week 15 Activities)

1. Define load factor, utility factor, and 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’

10.How ‘load duration curve’ is obtained from ‘load’ curve?

Note:
1. Answers should be hand written in a long bond paper.
2. Date of submission is in the last day of scheduled class.

GPGINES