Combined operation

of different power
plants
 Tariff
 The amount of In other words, the
money frame by the tariff is the methods
supplier for the of charging a
supply of electrical consumer for
energy to various consuming electric
types of consumers power. The tariff
in known as an covers the total cost
electricity tariff. of producing and
supplying electric
energy plus a
reasonable cost.
Types of Electricity Tariff
 Flat Demand Rate tariff
 Straight-line Meter rate
tariff
 Block meter Rate tariff
 Two-part tariff
 Power factor tariff
 Seasonal rate tariff
 Peak load tariff
 Three-part tariff
 1. Flat demand rate
tariff – The flat demand
rate tariff is expressed
by the equation C = Ax.
In this type of tariff, the
bill of the power
consumption depends
only on the maximum
demand of the load. The
generation of the bill is
independent of the
normal energy
consumption.
 2. Straight-line meter
rate tariff – This type of
tariff is given by the
equation C = By. The
generation of the bills
depends on the energy
consumption of the load.
Thus, different types of
bills are generated by
the consumers.
 3. Block meter rate
tariff – In this type of
tariff, the energy
consumption is
distinguished into
blocks. The per unit
tariff of the individual
block is fixed. The price
of the block is arranged
in the decreasing order.
The first block has the
highest cost, and it goes
on decreasing
accordingly.
 4. Two-part tariff – In
such type of tariff, the total
bill is divided into two
parts. The first one is the
fixed charge and the
second is the running
charge. The fixed charge is
because of the maximum
demand and the second
charge depends on the
energy consumption by the
load.
 The factor A and B may be
constant and vary
according to some sliding.
 5. Power factor a. kVA maximum demand tariff – This is
tariff – The tariff, also a two-part tariff.
which depends on the
power factor of the
load is known as the
power factor
tariff. The power b. kWh and kVarh tariff – The bill is
calculated by the sum of the kVarh and
factor tariff is mainly Kwh rating of the load
classified into two
types.
 c. Sliding Scale or
Average power factor
tariff – In Average power
factor tariff, the particular
value of the power factor
is taken as reference. If the
power factor at the
consumer end is low, then
the consumer has to pay
the additional charges.
Similarly, if the power
factor of the load is above
from the reference value,
then the discount will be
given to the consumer.
 6. Seasonal rate
tariff – Such type of
tariff measures the high
price in kWh used by
the consumer in one
complete year. It is also
known as the on peak
season tariff. If the low
consumption occurs in
the year, then it called
the off-peak season
tariffs.
 8. Three-part tariff – The three-part tariff is in the form of, and it is applied to the big consumer.

 7. Peak-load tariff – Such

type of tariff is similar to
8. Three-part tariff – The
peak load tariffs. The only
difference is that the three-part tariff is in the
seasonal tariff measures form of, and it is applied to
the peak hour of the year the big consumer.
and the peak tariff
calculates it for the day. If
the power consumption is
high, then it is known as
the on-peak tariff, and for
low power consumption, it
is called off-peak load
tariffs.
Some important definitions(please
write in sentences)

 (1) Demand factor  Diversity factor:

 Demand Factor =  Diversity Factor =
Maximum demand / Sum of Individual
Total connected load Maximum
Demands /
Maximum Demand
of the System.
 (3) Load factor:  (5) Maximum
 Load Factor=Actual demand:
Load / Full Load  The maximum
 (4) Coincidence demand of an
factor installation is the
 Coincidence factor = maximum rate of
Maximum demand / consumption
Sum of individual expressed in
maximum demands amperes, kW or
kVA.
6 Capacity Factor
The capacity factor is
defined as the ratio of
the total actual energy
produced or supply over
a definite period, to the
energy that would have
been produced if the
plant (generating unit)
had operated
continuously at the
maximum rating.
7Utilization factor
 The utilization
factor or use factor is
the ratio of the time
that a piece of
equipment is in use to
the total time that it
could be in use.
Depreciation
 Definition of  Accounting estimates
'Depreciation' the decrease in value
Definition: The using the information
monetary value of an regarding the useful
asset decreases over life of the asset. This
time due to use, wear is useful for estimation
and tear or of property value for
obsolescence. This taxation purposes like
decrease is measured property tax etc.
as depreciation. ...
Depreciation methods
 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
 1. Straight line method:
(i) 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. Thus, 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,

In general, the annual depreciation charge on the straight line method may be
expressed as :

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.
 (ii) Diminishing value method:
 (ii) Diminishing value method: In this method, depreciation
charge is made every year at a fixed rate on the 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.
 As an example, suppose the initial cost of equipment is Rs 10,000
and its scrap value after the useful life is zero.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.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.For the third year, the depreciation charge will be 0·1 × 8100 =
Rs 810 and so on.
DERIVATION of Diminishing Value Method
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.

But the value of equipment after n years (i.e., useful life) is equal to the
scrap value S.
(iii) Sinking fund method:
(iii) 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.

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
This total fund must be equal to the cost of replacement of equipment P − S.

The value of 'q' gives the uniform annual depreciation charge.The parenthetical term
in eq. (i) is frequently referred to as the “sinking fund factor”.
 Load Division between power
stations
 • A load duration curve illustrates the variation of a
certain load in a downward form such that the greatest load
is plotted in the left and the smallest one in the right. On
the time axis, the time duration for which each certain load
continues during the day is given.
• When the load curve has a very high peak
value, it is usually supplied for two or more
power stations by interconnection.

• Total load is divided into two parts.

A. Base Load B. Peak Load

Base load is supplied by one power

station and other power station takes care of the
peak load.
 Methods for Power Factor
Improvement
The following devices and equipment are used
for Power Factor Improvement.
1. Static Capacitor
2. Synchronous Condenser
3. Phase Advancer
 1. Static Capacitor

➢We know that most of the industries and power system loads are
inductive that take lagging current which decrease the system power
factor (See Disadvantages of Low Power factor) .
➢For Power factor improvement purpose, Static capacitors are
connected in parallel with those devices which work on low power
factor.
➢These static capacitors provides leading current which neutralize
(totally or approximately) the lagging inductive component of load
current (i.e. leading component neutralize or eliminate the lagging
component of load current) thus power factor of the load circuit is
improved.
➢These capacitors are installed in Vicinity of large inductive load e.g
Induction motors and transformers etc, and improve the load circuit
power factor to improve the system or devises efficiency.
➢Suppose, here is a single phase inductive load which is taking
lagging current (I) and the load power factor is Cosθ as shown in
fig-1.
➢In fig-2, a Capacitor (C) has been connected in parallel with load.
Now a current (Ic) is flowing through Capacitor which lead 90°
from the supply voltage ( Note that Capacitor provides leading
Current i.e., In a pure capacitive circuit, Current leading 90° from
the supply Voltage, in other words, Voltage are 90° lagging from
Current).
➢The load current is (I). The Vectors combination of (I) and (Ic) is
(I’) which is lagging from voltage at θ2 as shown in fig 3.
➢It can be seen from fig 3 that angle of θ2 < θ1 i.e. angle of θ2 is
less than from angle of θ2. Therefore Cosθ2 is less than from
Cosθ1 (Cosθ2> Cosθ1). Hence the load power factor is improved
by capacitor.
Advantages:
➢Capacitor bank offers several advantages over other methods of
power factor improvement.
➢Losses are low in static capacitors
➢There is no moving part, therefore need low maintenance
It can work in normal conditions (i.e. ordinary atmospheric
conditions)
➢Do not require a foundation for installation
➢They are lightweight so it is can be easy to installed
Disadvantages:
➢The age of static capacitor bank is less (8 – 10 years)
➢With changing load, we have to ON or OFF the capacitor bank,
which causes switching surges on the system.
➢If the rated voltage increases, then it causes damage it
➢Once the capacitors spoiled, then repairing is costly
 2. Synchronous Condenser
➢When a Synchronous motor operates at No-Load and over-exited
then it’s called a synchronous Condenser.
➢Whenever a Synchronous motor is over-exited then it provides
leading current and works like a capacitor.
➢When a synchronous condenser is connected across supply
voltage (in parallel) then it draws leading current and partially
eliminates the re-active component and this way, power factor is
improved.
➢ Generally, synchronous condenser is used to improve the power
factor in large industries.
Advantages:
➢Long life (almost 25 years)
➢High Reliability
➢Step-less adjustment of power factor.
➢No generation of harmonics of maintenance
➢The faults can be removed easily
➢It’s not affected by harmonics.
➢ Require Low maintenance (only periodic bearing greasing is
necessary)
Disadvantages:
➢It is expensive (maintenance cost is also high) and therefore
mostly used by large power users.
➢An auxiliary device has to be used for this operation because
synchronous motor has no self starting torque.
➢It produces noise
 3. Phase Advancer
3. Phase Advancer
➢Phase advancer is a simple AC exciter which is connected on the
main shaft of the motor and operates with the motor’s rotor circuit
for power factor improvement.
➢Phase advancer is used to improve the power factor of induction
motor in industries.
➢As the stator windings of induction motor takes lagging current
90° out of phase with Voltage, therefore the power factor of
induction motor is low.
➢If the exciting ampere-turns are excited by external AC source,
then there would be no effect of exciting current on stator
windings.
➢ Therefore the power factor of induction motor will be improved.
This process is done by Phase advancer.
 Factors involved in deciding an
electricity tariff (in exam don’t mention only points pls explain)

Factors involved in deciding an electricity tariff

➢The tariff should be such that the total cost of generation,
transmission, and distribution is recovered.
➢It should earn a reasonable profit.
➢It must be fair and at a reasonable to the consumers.
➢It should be simple and easy to apply.
➢It should be attractive than a competitor.