Name: MUHAMMAD FAHAD SAEED KHAN

Reg: FA17-EPE-091

Subject: POWER GENERATION

SESSIONAL EXAM I

Part A:

Enlist the effects of high load factor on the operation of power plants.

 Low maximum demand.

 Reduces variable load problems.

 Required station capacity is reduced.

 Lesser cost of electricity per unit generated.

Part B: Write short notes on the following:

1. Advantages of high load factor.

The load factor plays a great role in determining the cost of electricity. The loaf factor means

how we use energy efficiently. At any given time, any power generating station should be able to

satisfy the peak load demand for electricity. It is better to have a higher load factor

which suggests that the use of power is efficient relative to how you control the peak demand.

When the load factor is high, it reduces the overall cost of electricity per unit generated.

Load factor= Average load / peak load

2. Sinking fund method of depreciation.

Sinking fund method is a technique for depreciation an asset while generating enough money to

replace it at the end of its useful life. As depreciation charges are incurred to reflect the asset’s

falling value, matching the amount of cash is invested.

Sinking fund method requires the use of separate assets replacement fund for each asset.

3. Three-part form of cost of electrical energy.

The total cost of the electrical energy can be divided into 3 parts.

1. Fixed Cost.

2. Semi Fixed Cost.

3. Running Cost.

Fixed Cost:

It is the cost which is independent of maximum demand and its unit generated. It is due to annual

cost of central organization, interest on capital cost of land and salaries of high officials.

Semi Fixed Cost:

It is the cost which depends upon the maximum demand, but it is independent of unit generated.

The semi fixed cost is directly proportional to the maximum demand on power station and is on

account of annual interest and depreciation of capital investment of building and equipment,

taxes, salaries of management and clerical staff

Running Cost:

It is the cost which only depends on the number of units generated. The running cost is an

account of annual cost of fuel, lubricating oil, maintenance, repairs, and salaries of operating

staff. Since these charges depends upon the energy output. The running cost is directly

proportional to number of units generated.

Question: 02

Estimate the generating cost per kWh delivered from a generating station from
the following data :
Plant capacity = 50 MW ;Annual load factor = 40%
Capital cost = 1·2 crores ;
annual cost of wages, taxation etc. = Rs 4 lakhs ;
cost of fuel, lubrication, maintenance etc. = 1·0 paise/kWh generated.
Interest 5% per annum, depreciation 6% per annum of initial value.