Pen, Frcetont ena e ali The ant Aeliprintng pur eutk (ce. ont bik) Cot of, padacing of Uccieek energy fy kncwn o& economies of poner gentration, The om ecsk peda depends ow He tesk of cover Mite j puvclore, anetallaton and eraellon of L4pipmint - @ tesk of fill Prbowr, roferele. a. Te dhe cork canbe cline eT Sis 2 Fite co: peek votiak, tepends 2 ea ot, pe pevastrcu and Fananentl pales. SE heart be fle amount LA4t qurcteod < . 4 @ 5 et eee packs fa 2 pendttowa for fs fg» The wt o- pupontsion we abowr, Coa Cie aud Aebtwds Or Ha aunouk of currgy prabiad: $ Calrttal Cost et Maukse Dhan gacludes fhe prcbininany cost, Ed, Lak and often joal Heke, Cort of gr cmd plasningyy ae buldeng and eppepuonts, east ag brews tor. , erection cuk srstallation. of efpapwcul and overheads te- de prod al ats foo pe of Mastallec expect p= a ee sat i oe ¢ 2. Arwel Pred Gt 9 cowtsls f Adal, taxes Inguvanee, vectalion, managerial aud 0 cok teste and "he of robo te ead te ith a The ungeq rents (2) Inlowst , Taxes aud Msuyvances A a Ee eoibue de couslr Ee pe Eee Thin wo a octhey povided by Ae ernmed oy _borrouecl banks oy frucncel bvttiulious ov Enok Hla pale of AkeeK cv beuds oF both? Te Qual mA futarstl and dividond fave te be an 7 IE pi os © Meo, Hs, UAL Tie various taxes te ae on. ** asnla (a) Fuel. This is the largest item of expense in thermal, diesel and gas turbine stations. The fuel may be in the form of coal, oil, natural gas, wood scrap ete. The cost ‘of fuel depends on the type of fuel, calorific value, availability and freight rates. The annual fuel cost of a station depends fon the amount of energy produced, the efficiency of the plant and the unit price of fuel. The fuel fost of a station can be anticipated if (/) a realistic load model is known for cach future week or month in the planning period (ii) the units are committed to supply load in a manner that reflects ~ gctual operating procedures and conditions. (6) Operating labour. The operation of a plant needs staff and labour. In a steam plant labour js needed for unloading and storing of fuel, disposal of refuse, operation of boiler, prime mover ttc. The increasing application of automatic equipment and the increase in unit sizes have reduced the number of men required to operate a plant by a considerable amount. Hydro plants and diesel plants need less labour than steam plants. E (©) Maintenance cost. Every plant needs preventive maintenance (inspection, cleaning, repair, ‘overhauling etc.) to keep it in good condition. The maintenance costs can be further subdivided into the cost of material required for maintenance and cost of labour. To estimate the maintenance cost ‘of a proposed plant, the information from a similar plant in an analogous situation can be used. (d@) Supplies.This item includes the cost of water for make up, cooling purposes and general ‘use, lubricating oil and other consumable materials. Calculations of Operating Cost. The annual operating cost of the & th unit of a p« ‘can be written as: AOC, = FC, + OM, ower plant «- (3.2) where AOC, = annual operating cost of & th unit, (@ per year) F FC, = annual fuel cost of k th unit, (@ per year) OM, = annual cost of operating labour, maintenance and supplies of kth unit, (® per year) The annual fuel cost FC, is the product of the total amount of fuel consumed in one year ‘and the unit cost of fuel. The total annual operating cost of a station having a number of units is the sum of the individual annual operating costs of different units. 3.2.4. Annual Plant Cost. The annual plant cost (of a unit) can be straight-away written from Eqs (3.1) and (3.2). APC, = AFC, + AOC, G3) _ APC, = annual plant cost of the & th unit (@ per year) ‘AFC, and AOC, have been defined in Eqs. (3.1) and (3.2). “The total annual station cost for the entire generating station having » generating units is the m of individual plant costs of different units. Thus TASC = E APC, where TASC = Total annual station cost (® per year). A power system, always, has a number of generating stations of different types and sizes. total annual cost of the system can be obtained by adding the total annual station costs of the ; generating stations. mn Cost. It is usually necessary to estimate the generation cost (i.e. cost of for a generating unit. This information is needed when different generat- d. For this purpose it is necessary to calculate the expected energy ‘one year, This is given by: G4)POWER PLANT ECONOMICS OM, == (0.15) (563706000) = 84555900 AOC, = € (563706000 + 84555900) = 648261900 APC, = & (330 x 10 + 648261900) = % 978261900 978261900 Gc, Siero oe (865774800 + 978261900) ee TT 52998 x 10° + 57816 x 10° ods (@ OGc= "3,3. DEPRECIATION ‘The value of the power plant decreases from its "initial value to the salvage value at the end of its useful life. This depreciation is due to ageing, wear and tear of machinery, corrosion, weathering, and obsolescence of equipment etc. "At the end of the useful life of the plant, funds must be available to replace the equipment. The depreciation charge represents the amount which jigset aside from income every year and placed in depreciation reserve. For calculating this charge, _ it is necessary to estimate the useful life of ‘plant. The life of heavy electrical equipment and n turbines is generally taken as 20-25 years, ‘turbines 30 years and civil engineering years. The depreciation charge may be ‘straight line method or sinking fund or fixed percentage method. Straight Line Method. This method Big, 3-1. Straights cea INITIAL VALUE > ——> Amount VALUE “€-SALVAGE><4——— TOTAL DEPRECIATION. —> USEFUL LIFE, YEARS ___Initial cost Salvage value Number of years of useful life 47 “€-TOTAL RESERVE ACCUMULATION