Sheet 2

Ain Shams University Energy Program
Faculty Of Engineering 2017-2018

Economics of Generation
Sheet (2)
Part I : Plant Economy
(1)
The following data are related to a 10 MW, 11 kV thermal station:
Cost of plant 1200 $/KW capacity
Interest & insurance 9%
Depreciation 3%
Cost of fuel including transportation 0.08 $/KWH
Operating cost 500,000 $/year
Maintenance cost 20,000 $/year
Maximum demand 9 MW
Annual load factor 0.6
Find the average cost of generated energy ($/YEAR)

(2) A steam generating station supplies the following daily load curves:
Time 12-5 5-8 8-12 12-1 1-5 5-9 9-12
Load # 1(MW) 25 40 60 100 100 70 60
Load # 2 (MW) 40 50 100 100 100 20 20
The utilization factor is 88.88%. If the annual fixed charges are 200 $/KW
of installed capacity and the annual running charges are 0.08 $/KWH of
electrical energy. Calculate the total cost of 1 KWH.
(3) The annual fixed and operating costs of a 300 MW hydro station are 600
$/KW and 0.02 $/KWH, respectively. Plot the variation of unit cost of
energy with the load factor.
(4) A load having a load factor of 100% is to be supplied by a steam power
plant, the costs are given as:
Capital cost 840 $/KW capacity

Fuel cost 80 $/ton
Fuel consumption 0.6 kg/KWH
Maintenance charges 0.002 $/KWH
Other operating costs 0.02 $/KWH
Fixed charge rate 10%
a- If the average cost of KWH was found to be 0.0913 $, what will

be the capacity factor?
b- Now there is a new load has the following daily load curve as a
percentage of the plant capacity:
Time 12-5 AM 5-12 PM 12-4 PM 4-10 PM 10-12 AM
Load % 20 50 70 60 20
Find the load factor of this load? Is it possible to supply this load
together with the load in part (a) from the station? Explain why?
(5) The average daily load curve for a steam power generating station is
given as:
Time 12 7 9 3 5 12
Load (MW) 10 10 20 20 10 10
Determine the best suitable size of units to be installed. The total annual
cost of units to be installed can be expressed as:
For 10000 KW units: 25/KW + 0.03/KWH + 15/Hr $/year
For 20000 KW units: 20/KW + 0.025/KWH + 20/Hr $/year
(6) The maximum demand of a power system is 2000 MW. This demand is
proposed to be met by installing a hydrothermal system. The
hydrosystem will meet the base load of 1200 MW and will operate at a
load factor of 0.8. The steam station will meet the remaining demand
and will operate at a load factor of 0.4. Installed capacity of each station
will be 25% more than the load. the capital costs are 5000 $/KW for
hydro and 2500 $/KW for steam plant, the interest and depreciation
charges being 11%. The operating costs of hydro and steam plants are
0.02, 0.08 $/KWH respectively. Find the overall generation cost/KWH.
(7) The maximum demand of power system is 200 MW at yearly load
factor of 0.8. It is proposed to supply this load by either of the following
schemes:
a- A steam power station in conjunction with a hydro station, the
load is divided equally between them.
b- A nuclear power station is supplying the whole load. The
following data can be used:
Station type Steam Hydro Nuclear
Capacity in MW 100 100 200
Capital cost ($/KW) 1000 1200 2000
Operating cost ($/KWH) 0.05 0.015 0.033
Interest & depreciation 17% 17% 17%
Neglecting losses and reserve (Utilization factor =100%). Which scheme

would give less annual cost. Find the average cost of KWH in each case.
(8) The cost of land necessary to construct a 300 MW thermal station is
750,000 $. The total cost of station building is 120*10 6 $ and the cost of
equipment is 800 $/KW. The economical life of station equipment is 20
years. At the end of this period the expected value of buildings and
equipment will be 20% of its original value. The interest on the loan is
10% per year.
Find the cost of energy to be supplied by the station ($/MWH) if the station
is fully utilized as a base load station with a fuel consumption of 0.3
Kg/KWH at 100 $/ton and the fuel cost is 90% of the total running cost.
(9) A region has a maximum demand of 500 MW at a load factor of 50%
The load duration curve can be assumed to be a triangle . The utility has
to meet this load by setting up a generating system which is partly
hydro and partly thermal . The costs are as following:
Hydro Plant
3600 $/KW per annum + operating expenses 0.18 $/KWH
Thermal plant
1800 $/KW per annum + operating expenses 0.78 $/KWH
Determine the capacity of hydro Plant ,capacity of thermal plant
,energy generated annually by each and overall generation cost per
KWH for minimum total cost.
(10) Compare the annual cost supplying electrical energy to a new factory
has a maximum demand of 1500 KW at load factor 35%, if the energy
to be supplied by a private diesel plant or a public supply.
a- Private diesel plant
Cost of plant 900,000 $.
Cost of fuel oil/ton 75 $.
Oil consumption 0.3 Kg
Cost of water, stores,… 0.42 ¢/KWH
Cost of repair, maintenance 0.28 ¢/KWH
Wages / year 15,000 $.
Interest & depreciation 20%
b- Public supply
Annual cost 75 $/KW of max. demand + 5 ¢/KWH
Part II : Transmission Economy
(1) It is required to transmit electrical energy to a consuming center 100

Km. away from the generation source. Daily load data are described
in the following table. For the transmission of this energy, a 110 kV,
3-ph, 50 Hz, and single circuit overhead transmission line is utilized.
The annual fixed cost is defined as (19800+50.58A) lE/Km, where A
is conductor cross sectional area in mm2. Given specific resistance
17.2 ohm/mm2/Km, cost of energy 0.08 LE/KWH and a load power
factor of 0.85. Determine the energy cost at the load bus.
Time (hr) 12 2 5 8 5 6 9 12
Load (MW) 20 10 10 50 50 100 100 20
(2) A load having a Max. demand of 10 MW, annual load factor = 60%,
capital cost = 500 LE/KW of plant capacity, annual cost of fuel, oil,
wages is 0.062 LE/KWH. Rate of interest is 10% and the plant has an
average life of 20 years. The capacity of the station is 20 MW.
• Estimate the cost of KWH at the station bus.
• If the difference between the plant capacity and the demand at any
time is transmitted to a load center 100 km away from the station,
Find the new cost of energy at the station bus.
• Find the cost of energy at the load bus assume that the cost of
transmission system: (3-phase 110 kV single circuit) is 10000
LE/km. The resistance/conductor/Km is 0.0765 Ohm. Power
factor of the load is 0.85 lag. Prms can be taken as 1.2 Pave.
(3) A utility is planning to construct a power station to supply a load

consuming center 30 Km away from the proposed station location
and having the following characteristics:
80 MW, 0.8 p.f. lagging for 10 hours,
30 MW, 0.85 p.f. lagging for 6 hours, and
18 MW, 0.90 p.f. lagging for 8 hours

Either of the following supply schemes is available:
a- steam station b- hydro station
The following station data are given:
Item Steam station Hydro station
Capital cost (LE/KW) 600 1500
Operation cost (LE/KW) 0.05 0.01
Interest & Depreciation % 12 7
For the purpose of transmitting energy to the load center, it is suggested that
either a double circuit O.H.T.L or a double circuit U.G.C is utilized. The
following data are given:
Transmission voltage: 3-phase, 66KV, 50Hz,Interest & Depreciation = 12%
For double circuit O.H.T.L:
• Cost of double circuit (LE/KM) = 35000+120A, where A is

cross-sectional area in mm2.
• Specific resistance = 17.2
For double circuit U.G.C:
• Cost of double circuit (LE/KM) = 80000

• Conductor resistance /PH/Km = 0.28 Ohm
• Capacitance / PH/KM = 0.45F
• Sheath resistance /PH/KM = 0.042 Ohm
• Mutual reactance / PH/KM = 0.15 Ohm
• Power factor of insulation = 0.003
Select the most appropriate supply system.

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Ain Shams University Energy Program

Faculty Of Engineering 2017-2018

Find the average cost of generated energy ($/YEAR)

Capital cost 840 $/KW capacity

a- If the average cost of KWH was found to be 0.0913 $, what will

Neglecting losses and reserve (Utilization factor =100%). Which scheme

(1) It is required to transmit electrical energy to a consuming center 100

Load (MW) 20 10 10 50 50 100 100 20

(3) A utility is planning to construct a power station to supply a load

80 MW, 0.8 p.f. lagging for 10 hours,

30 MW, 0.85 p.f. lagging for 6 hours, and

18 MW, 0.90 p.f. lagging for 8 hours

a- steam station b- hydro station

The following station data are given:

Item Steam station Hydro station

Capital cost (LE/KW) 600 1500

Operation cost (LE/KW) 0.05 0.01

Interest & Depreciation % 12 7

Transmission voltage: 3-phase, 66KV, 50Hz,Interest & Depreciation = 12%

For double circuit O.H.T.L:

• Cost of double circuit (LE/KM) = 35000+120A, where A is

For double circuit U.G.C:

• Cost of double circuit (LE/KM) = 80000

Select the most appropriate supply system.

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