ITU Elk 421e Generation of Electrical Energy

ELK 421E
GENERATION OF
ELECTRICAL
ENERGY
TAKE HOME QUIZ
ANSWERS OF QUESTIONS
1.
Tariff is the arrangment of price for something. Electrical tariff or electricity
pricing varies broadly from country to country, it can even change in different
areas of the country. Several reasons can be attribute to that pricing. Electrical
tariff does exist because usage of electricity should be controlled and additional
loads to generation part of electricity might be hazardous for whole system and
country. Objectives of a tariff should have these:
Recovery of cost of producing electrical energy at the power station.

Recovery of cost on the capital investment in transmission and distribution
systems.
Recovery of cost of operation and maintenance of supply of electrical
energy e.g., metering equipment, billing etc.

A suitable profit on the capital investment.
2.
A quite good tariff should have these characteristics:
3.
Proper Return
Fairness
Simplicity
Reasonable Profit
Attractive
Simple tariff, flat rate tariff, block rate tariff, maximum demand tariff,
power factor tariff, two part tariff and three part tariff are important types of
tariffs.
4.
Two-part tarif: When the rate of electrical energy is charged on the basis
of maximum demand of the consumer and the units consumed, it is called a twopart tariff.
Three-part tarif: When the total charge to be made from the consumer
is split into three parts with fixed charge, semi-fixed charge and running charge,
it is known as a three-part tariff.
5.
Interest: The cost of use of money is named as interest.

Deprecation: The decrease in the value of the power plant equipment and
building due to constant usage is named as deprecation.
6.
Cost of electrical energy can be thought into 3 parts, which are:

Fixed cost: The cost that is independent of maximum demand and
generated units named as fixed cost.

Semi-Fixed cost: The cost which is dependent on maximum demand,
however, independent from generated units is named as semi fixed cost.
Running cost: It is the cost that is only depends on number of units
generated.
7.
The basis for expressing the cost of electrical energy as a + b kW + c kWh
can be explained as:

Total annual cost of energy = Fixed cost + Semi Fixed cost + Running
cost
= Constant + Prop. to max. demand + Prop. to kWh
generated
= TL * (a + b kW + c kWh)
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.
8.
There are three methods to determine deprecation of equipment.

Straight line method: In this method, a constant depreciation charge is
made every year on

the basis of total depreciation and the useful life of the property. Obviously,
annual depreciation
charge will be equal to the total depreciation divided by the useful life of the
property.
Diminishing value method: In this method, depreciation charge is made
every year at a fixed rate onthe diminished value of the equipment. In other
words, depreciation charge is first applied to the initial cost of equipment and
then to its diminished value.
Sinking fund method: In this method, a fixed depreciation charge is
made every year and
interest compounded on it annually. The constant depreciation charge is such
that total of annual
instalments plus the interest accumulations equal to the cost of replacement of
equipment after its
useful life.
9.
High load factor means that the utilization of power is near to constant.
That lead power station work with less additional loading problems. Higher the
load factor power station, lesser will be the cost per unit generated.
10.
(i):
It 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.

It 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.
(ii):
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. An amount q at annual interest rate of r will
become q(1 + r)^n at the end of n years.
Now, 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).
Amount q deposited at the end of first year becomes

= q (1 + r)^(n 1)
(iii):
In this method, the overall annual cost of electrical energy
generated is divided into three parts with fixed cost, semi-fixed cost and
running cost.
11.
The load on a power system varies from time to time owing to uncertain
demands of costumers. Due to changing load, there may need to:
12.
Additional equipment
Increase in production cost
Load curve is a curve that shows variation of load on the power station
with respect to time. According to its type, daily, monthly or yearly load
variations can be obtained. In addition to, area of under daily load curve gives
the number of units generated in the day for instance. Maximum demand can be
seen from load curve. Moreover, the area under the daily load curve divided by
the total number of hours gives the average load on the station in the day. The
ratio of the area under the load curve to the total area of rectangle in which it is
contained gives the load factor.
13.
Connected load: It is the sum of continious ratings of all the equipments
connected to supply system.

Maximum demand: It is the greatest demand of load on the power
station during a given period.
Demand factor: It is the ratio of maximum demand on the power station
to its connected load.
Average load: The average of loads occuring on a power station in a
given period such as day, month or year, is known as average load.
14.
Load factor: The ratio of average load to maximum demand during a
given period is named as load factor. Higher the load factor power station, lesser
will be the cost per unit generated.
Diversity factor: The ratio of the sum of indiviual maximum demands to
the maximum demand on power station is known as diversity factor. The greater
diversity factor, the lesser is the cost of generation of power.
15.
In practice, a number of generating units of different sizes are installed in
a power station. The selection of the number and sizes of the units is decided
from the annual load curve of the station. The number and size of the units are
selected in such a way that they correctly fit the station load curve.
16.
The number and sizes of the units should be so selected that they
approximately fit the annual load curve of the station.

The units should be preferably of different capacities to meet the
load requirements. Although use of identical units (i.e., having same
capacity) ensures saving in cost, they often do not meet the load
requirement.
The capacity of the plant should be made 15% to 20% more than the
maximum demand to meet the future load requirements.

There should be a spare generating unit so that repairs and
overhauling of the working units can be carried out.

The tendency to select a large number of units of smaller capacity in
order to fit the load curve very accurately should be avoided. It is
because the investment cost per kW of capacity increases as the

size of the units decreases.
17.
Base load: the unvarying load which occurs almost the whole day on the
station.
Peak load: the various peak demands of load over and above the base
load of the station.
18.
The total load on a power station consists of two parts with 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.
19.
Some of the advantages of interconnected system are:
20.
Exchange of peak loads

Use of older plants
Ensures economical operation
Increases diversity factor
Reduces plant reserve capacity
Increases reliability of supply
(i) The curve showing the variation of load on the power station with
respect to time is known as a load curve.
(ii) 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. When water is available in sufficient quantity as in summer and
rainy season, the hydro-electric plant is used to carry the base load and the
steam plant supplies the peak load. 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.
(iii) The ratio of average load to the maximum demand during a given
period is known as load factor.
(iv) It is the ratio of actual energy produced to the maximum possible
energy that could have been produced during a given period.

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ELK 421E

Tariff is the arrangment of price for something. Electrical tariff or electricity

Recovery of cost of producing electrical energy at the power station.

energy e.g., metering equipment, billing etc.

A quite good tariff should have these characteristics:

Interest: The cost of use of money is named as interest.

building due to constant usage is named as deprecation.

Cost of electrical energy can be thought into 3 parts, which are:

generated units named as fixed cost.

The basis for expressing the cost of electrical energy as a + b kW + c kWh

can be explained as:

a. Annual fixed cost independent of maximum demand and energy

There are three methods to determine deprecation of equipment.

made every year on

It reduces cost per unit generated: A high load factor reduces

more. This reduces the cost of generation.

charge every year and interest compounded on it so that an amount of P

Amount q deposited at the end of first year becomes

In this method, the overall annual cost of electrical energy

demands of costumers. Due to changing load, there may need to:

Connected load: It is the sum of continious ratings of all the equipments

connected to supply system.

Load factor: The ratio of average load to maximum demand during a

In practice, a number of generating units of different sizes are installed in

approximately fit the annual load curve of the station.

maximum demand to meet the future load requirements.

overhauling of the working units can be carried out.

because the investment cost per kW of capacity increases as the

Some of the advantages of interconnected system are:

Exchange of peak loads

respect to time is known as a load curve.

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