TRIBHUVAN UNIVERSITY Examination Regular

INSTITUTE OF ENGINEERING Level M.Sc Full Marks 60

Examination Control Division Program Power system Pass Marks 30
2075Chaitra
Engineering
Year / Part I/II Time 3 hrs

Subject: Power System Planning and Economics

 Candidates are required to give answers in their own words as far as practicable.
 Attempts All questions.
 The figures in the margin indicate Full Marks.
 Assume suitable data if necessary.

1 Describe the various Structure of Electricity planning. 5

2 Explain the benefit of cogeneration. 5
3 The annual load duration curve of a small hydropower plant shows 438 MWh of energy during the year. 6
It is a peak load plant with 20% annual load factor. Find the station capacity. If plant capacity factor is
15%, find reserve capacity of the plant.

4 The load duration curve of a power plant is shown in the figure 1. Power supplied using one generating 8
unit of 150 MW and two units of 70 MW capacity each. Determine (I) Installed Capacity (ii) Plant
Load Factor (iii) Plant Capacity factor (iv) Maximum demand (v) Utilization factor.

5 How has DSM been implemented in Nepal. What is the level of success? 5
6 A Power utility is considering two alternative power plants A and B for meeting an additional power 6
demand of 800 MW. The unit capacity costs of Plants A and B are $1200/kW and $1000/kW
respectively. The Operation and Maintenance and fuel costs associated with electricity generation from
A and B are $50/MWh and $90/MWh respectively. The life of each power plant is 20 years. Which
plant would be cost effective if the plant capacity factor is 0.5? Use a discount rate of 10% per annum.
[Note: The capital recovery factor here = 0.185]
7 What is the purpose of economic dispatch? Also describe the system incremental cost. 5
8 Explain the Cost Representation for Screening Curve. 5
9 Describe how to evaluate Levelized Cost of Energy? 5
10 A utility is considering two options for constructing and operating a 500 MW power plant, that is 10
combined-cycle unit and coal-fired generating unit as shown in table below.. The discount rate is 15%
per annum and escalation rate for fuel price is 5% per annum. Levelized fixed charge rate for two types
of power plants is 15% and 20 % per year. The life of each type of power plant is 25 years.

combined-cycle unit Coal-Fired Generating Unit

Heat Rate 9000 Btu/kWh 9500 Btu/kWh

Fuel Cost 4.0 $/MBtu 3.0 $/Mbtu

Plant Cost 750 $/kW 1400 $/kW

O & M Cost (Fixed) 10 $/kW/year 25 $/kW/year

O & M Cost (Variable) 4 $/MWh 6 $/MWh

Levelized Fixed-Charge Rate 15% year 15% year

Discount Rate 10% year 10% year

Fuel Price Escalation 6% year 6% year

Capacity Factor 60% 70%

(a) Calculate the annual levelized owning cost (or revenue requirements) in dollars per year based on
plant operation at 60% capacity factor. Which type of plant would be selected from the revenue
requirements criterion?
(b) How would the results in (i) vary at 40% capacity factor?
(c) Calculate the levelized annual generation cost at 60% capacity factor in dollars per MWh (or in
cents/kWh). How would the cost compare at 40% capacity factor?