POWER PLANT ECONOMICS

Dr Ali Abdul Aziz

Electricity in bulk quantities is produced in power plants,
which can be of the following types:

Thermal
Nuclear
Hydraulic
Gas Turbine
Geothermal

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 Load Curves

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 Typical hourly load curves

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 The average and peak loads

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 The two main parameters to be decided when planning a
power plant:

1- Total power to be installed

2- Size of the generating units

The total installed capacity required can be determined from:

1- First maximum demand estimated

2- Growth of the demand
3- Reserve capacity required

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 The size of generating units will depend on:

1- Variation of load with the time

2- Total capacity of the units connected to the grid.

3- Minimum start-up and shut-down periods of the units.
4- Maintenance program planned.
5- Plant efficiency versus the size units.
6- Price and space demand per kW versus the size units.

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 1- Load Factor
It is the ratio between the average load and the maximum load.

average load
Load factor
peak load

Good power plant design need high load factor.

2- Capacity Factor

It is the ratio between the actual energy generated and the

maximum energy can be produced during the same time.

Energy generated
Plant capacity factor
maximum energy generated
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 avearge load total time
Plant capaci ty factor
installed capacity total time

avearge load
Plant capacity factor
installed capacity

3- Reserve Factor

The difference between the load factor and capacity factor is

an indication of the reserve capacity.

Load factor
Re serve capacity
Capacity factor
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 4- Demand Factor

The connected load is the sum of rating of equipment

installed by consumers.

actual maximum demand

Demand factor
total connected load

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 5- Diversity Factor

The time distribution of maximum demands for similar

types of consumers is measured by a term called
diversity factor.

sum of individual consumers

Diversity factor
actual peak load of the system

abc
Diversity factor
d

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 6- Plant use Factor

It is the ratio between the actual energy generated and

the maximum energy can be produced during the plant
operation time.

energy generated
Plant use factor
installed capacity operation time

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 The load duration curve unit size

Load duration curve represents the number of hours for

a certain load still remain.

The construction of a load duration curve for one day

from the chronological load curve of this day is
illustrated in Fig.(5.4).

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kWh kW .dt
0

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 1- Base load
2- Intermediate load
3- Peaking load
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 Location of Power Plants
For conventional base load thermal power plants, the following
factors are to be considered:
1- Availability of cooling water.
2- Availability of fuel.
3- Distance from the centre of the load demand.
4- Cost of land.
5- Character of the soil.
6- Main wind direction and water currents in cooling water source.
7- Rail and road connections.
8- danger of earthquakes.
9- Density of population
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POWER PLANT COSTS
The cost per kWh is determined by:

1- Fixed cost (FC)

2- Operation and maintenance (O&M) costs.

3- Fuel costs.

The total annual costs (Ct) in a power plant can be calculated from:

I D T
Ct Cc (W R M ) C f
100
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 The total amount of electricity sent out by a power plant is given by:

L
kWhnet kWinstalled 8760 1 aux n
100

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 1- Construction costs

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 2- Fixed Cost and Depreciation

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 3- Fuel Cost

The fuel consumption depends on the amount of electrical energy

produced.

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 The cost of power generation can be reduced by

1- Selecting equipment of longer life and proper capacities.

2- Running the power station at high load factor.

3- Increasing the efficiency of the power plant.

4- Carrying out proper maintenance of power plant equipment.

5- Keeping proper supervision.

6- Using a plant of simple design.

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