CHAPTER 2

ELECTRIC POWER GENERATION

TECHNOLOGIES
B E V 3 0 3 0 3 P O W E R G E N E R AT I O N , T R A N S M I S S I O N A N D D I S T R I B U T I O N

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 CONTENTS
2.1 Introduction
2.2 Conventional Power Generation Technologies
2.3 Renewable Energy Sources
2.4 Distributed Generations
2.5 Economics of Power Generation

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2.4 Distributed Generations

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2.4 Distributed Generations

Distributed generation (DG) is refers to a power-supply system where small

generating units are installed close to the source of demand
Improves the stability of the overall transmission and distribution network
Reduces the need to upgrade the transmission system
Example of DG fuel cells, solar and wind power.

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2.4 Distributed Generations

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2.4 Distributed Generations

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2.5 Economics of Power
Generation

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2.5 Economics of power generation

The art of determining the per unit (i.e., one kWh) cost of production of electrical
energy
To achieve overall economy so that the per unit cost of production is as low as
possible
Cost of Electrical Energy
Fixed Cost. The cost which is independent of maximum demand and units
generated
Semi-fixed Cost. The cost which depends upon maximum demand but its
independent of units generated
Running Cost. The cost which depends only upon the number of units generated

Cost of electrical energy

= Fixed cost + Semi-fixed cost + Running cost
= a + b x (kW) + c x (kWh)

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Example 2.3
A generating station has an installed capacity of 50,000 kW and delivers 220 x 106
kWh per annum. If the annual fixed charges are RM160 per kW installed capacity
and running charges are RM0.04 per kWh, Determine the cost per unit generated.

Solution

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Example 2.4
A generating station has an a maximum demand of 50,000 kW.
Calculate the cost per unit generated from the following data:

Capital cost = RM95 x 106

Annual cost of fuel and oil = RM9 x 106
Taxes, wages and salaries etc. = RM7.5 x 106
Interest and depreciation = 12%
Annual load factor = 40%

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Solution

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TUTORIAL

Given a power plant with capacity of 100 MW and delivers 220 x 103 MWh per
annum. If the annual fixed charges are RM180,000 per MW installed capacity and
running charges are RM0.03 per kWh, Determine the cost per unit generated.

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THANK
YOU
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