ECA MP
ECA MP
ECA MP
(0018)
Program Name and Code : EE 5I
Course Name and Code : Energy Conservation & Audit( 22525 )
Academic Year : 2024-25
Semester : Fifth
A MICRO PROJECT
On
TO PREPARE A TECHNICAL PRESENTATION ON
DIFFERENT TYPES OF TARIFF
Guided By
Shri N. S. Varade sir
( Lecturer in Electrical Department )
1
MAHARASHTRA STATE BOARD OF TECHNICAL
EDUCATION
Certificate
2
GOVERNMENT POLYTECHNIC
JALGAON
-SUBMISSION-
And that following students were associated with me for this work, however,
quantum of my contribution has been approved by the Lecturer.
And that I have not copied the report on its any appreciable part from any other
literature in contravention of the academic ethics.
32
33
3
ANNEXTURE II
Major Learning Outcomes achieved by students by doing Project: Understand the structure
of different tariff system
Student Name Marks out of 6 for Marks out of 4 for Total out of
performance in performance in 10
group activity oral /
Roll (D5 Col.8) presentation
No. (D5 Col.9)
4
WEEKLY PROGRESS REPORT
1 Selection of Topic
3 Gathering information
5 Working on ppt
6 Working on ppt
9 Working on report
13 Checking of ppt
5
14 Seminar
15 Viva voce
6
ACKNOWLEDGEMENT
that project. I sincerely thank to N. S. Varade Sir for their guidance and
department who rendered their help during the period of my project work.
7
INDEX
1. INTRODUCTION
2. NEED OF TARIFF
4. DESCRIPTION OF ALL
TYPES OF TARIFF
5. CONCLUSION
6. REFERENCES
8
INTRODUCTION
1. Cost Recovery:
9
Properly designed tariffs, such as time-of-use or block rate tariffs,
encourage consumers to use energy more efficiently. For instance, higher
rates during peak demand times can motivate users to shift usage to off-
peak periods, reducing strain on the grid and lowering overall energy
costs.
4. Promotion of Equity:
Tariff systems can help ensure that vulnerable populations have access to
affordable electricity. Special rates for low-income households or
subsidies can be part of the tariff system to make electricity more
accessible while preventing overconsumption.
5. Management of Demand:
10
for consumers who use or generate electricity from renewable sources
(solar, wind, etc.).
8. Sustainability:
Time-off-day tariff
Peak- off-day tariff
Power factor tariff
Maximum Demand tariff
Load factor tariff
Availability Based Tariff (ABT)
1. Time-off-day tariff :
11
during different hours, encouraging consumers to shift their
usage to off-peak times when demand is lower and electricity is
cheaper.
12
consumption to take advantage of lower rates, reducing overall
energy waste.
13
find it difficult to adapt their schedules to take advantage of off-
peak rates.
14
2. Peak of Day Tariff System :
The Peak-of-Day Tariff System in the electrical field, often called
Peak Pricing or Peak Load Pricing, is a form of electricity pricing
where higher rates are charged during the periods of the day when
demand for electricity is at its highest. This peak period usually
occurs in the late afternoon or evening when residential and
commercial electricity use overlaps. Outside of these peak hours,
the electricity rates are lower.
How It Works:
15
The main goal of the Peak-of-Day tariff is to encourage
consumers to use electricity more efficiently and reduce usage
during peak periods, helping to alleviate pressure on the power
grid and avoid the need for additional generation capacity.
16
3. Reduces the Need for Additional Power Plants:
17
Disadvantages of Peak-of-Day Tariff System:
18
4. Impact on Vulnerable Consumers:
19
3.Power factor Tariff System :
20
Utilities prefer a high power factor because it reduces losses in
transmission and distribution systems and improves overall
energy efficiency.
21
consumer’s equipment and the utility’s transmission system,
reducing energy losses.
2. Reduces Strain on the Grid:
By encouraging a higher power factor, the tariff system reduces
the load on power plants, transmission lines, and transformers,
leading to fewer voltage drops and improved stability of the
electrical grid.
3. Incentivizes Energy Management:
Businesses are encouraged to install equipment like capacitors or
power factor correction devices to improve their power factor,
which can reduce their electricity bills in the long run.
4. Lower Demand Charges:
Consumers who maintain a high power factor are typically
charged less in demand-based tariffs (based on kVA demand), as
they are using energy more efficiently.
5. Environmental Benefits:
By improving energy efficiency and reducing the need for
additional power generation, the power factor tariff system
indirectly helps lower greenhouse gas emissions and reduces the
need for new power plants.
22
1. High Initial Costs for Power Factor Correction:
Consumers may need to invest in expensive power factor
correction equipment (e.g., capacitor banks) to avoid penalties,
which can be a significant upfront cost, especially for small or
medium-sized enterprises.
2. Complexity in Monitoring and Implementation:
Monitoring the power factor requires specialized metering
systems. Installing, maintaining, and reading these meters can
add complexity and costs for both utilities and consumers.
3. Unavoidable for Some Industries:
Certain industries with heavy inductive loads (e.g.,
manufacturing plants, steel mills) naturally have low power
factors, and improving the power factor may be technically
challenging or expensive for them, leading to unavoidable
penalties.
23
5. Limited Relevance for Small Consumers:
The power factor tariff system is mainly relevant to large
industrial and commercial consumers. For smaller consumers,
such as residential users, power factor penalties are usually not
applicable as they have minimal impact on the overall grid
efficiency.
24
1. Energy Charge: This component is based on the total energy
consumed during the billing period, calculated in kilowatt-hours
(kWh).
25
1. Promotes Efficient Energy Usage:
26
4. Cost Savings for Consumers with Efficient Demand
Management:
27
Large commercial and industrial consumers must monitor and
manage their maximum demand closely, which can be
complicated and require additional metering and energy
management systems.
2. High Initial Costs for Demand Management:
To manage or reduce their peak demand, consumers may need to
invest in equipment like demand controllers, energy storage
systems, or load-shifting technologies, which can be costly,
especially for smaller businesses.
3. Potential for Higher Costs:
Consumers who cannot control their maximum demand
effectively, either because of the nature of their business (e.g.,
manufacturing plants with large machinery) or operational needs,
may face significantly higher charges compared to a standard
tariff system.
4. Difficult to Avoid for Certain Operations:
Some industries, such as heavy manufacturing, mining, or
hospitals, cannot easily shift their loads to off-peak periods or
reduce peak demand without impacting their operations, leading
to unavoidable high demand charges.
5. Metering Infrastructure:
Implementing a maximum demand tariff system requires precise
metering infrastructure, often in the form of smart meters that can
record real-time usage and demand. Installing and maintaining
this infrastructure adds costs for both utilities and consumers.
28
4. Availability Based Tariff System :
29
2. Energy Charge:
30
are penalized for over-supplying, and consumers are incentivized
to use more energy.
31
3. Encourages Optimal Generation:
32
With more predictable demand and supply patterns, utilities can
reduce the reliance on standby or backup generation, leading to
overall cost savings in power generation and grid operation.
33
from the schedule can lead to significant penalties, which can be
challenging for industries with variable demand or renewable
energy generators affected by weather conditions.
2. Complexity in Implementation:
34
4. Increased Administrative Costs:
5. Unpredictable UI Charges:
35
The ABT system is generally more applicable to large consumers
(like industries) and power producers. Small consumers, such as
households, typically do not have the resources to forecast their
energy usage or adjust to the penalties and incentives of the ABT
system.
36
Reference
WWW.CHATGPT.COM
WWW.ELECTRICAL4U.COM
https://electrical-engineering-portal.com/download-center/books-and-
guides/power-substations/transformer-differential-protection-scheme
WWW.AXCONTROL.COM
37