Calculate the generation cost of a hydro-power station in two parts: fixed charges and running charges based on provided parameters.

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Understand the Problem

The question is asking to calculate the generation cost of a hydro-power station based on given parameters such as capital cost, depreciation, running charges, and royalty. It specifies that the answer is required in two parts, focusing on fixed and running charges.

Answer

The generation cost is approximately Rs 161.03 per kWh.
Answer for screen readers

The generation cost is Rs 160 for fixed charges and approximately Rs 1.027 for running charges, leading to a total generation cost per kWh of approximately Rs 161.03.

Steps to Solve

  1. Calculate Units Generated Annually To find the total units generated per year, use the formula: [ \text{Units generated per annum} = \text{Maximum demand} \times \text{Load factor} \times \text{Total hours in a year} ] Applying the values: [ (40 \times 10^3) \times 0.6 \times 8760 = 210.24 \times 10^6 \text{ kWh} ]

  2. Determine Capital Cost of the Plant The capital cost can be calculated as follows: [ \text{Capital cost of the plant} = \text{Capacity} \times \text{Cost per kW} ] Substituting the values: [ 50 \times 10^6 = 50 \times 10^3 \times 1000 = 50 \times 10^6 \text{ Rs} ]

  3. Calculate Annual Depreciation Charges The depreciation is 10% of the capital cost: [ \text{Depreciation} = 0.1 \times \text{Capital cost} = 0.1 \times 50 \times 10^6 = 5 \times 10^6 \text{ Rs} ]

  4. Calculate Salaries and Maintenance Costs Given that the total expense for salaries and maintenance is Rs 7,00,000, we find: [ \text{Salaries and maintenance} = 2 \times 7,00,000 = 1.4 \times 10^6 \text{ Rs} ]

  5. Calculate Total Annual Fixed Charges Total fixed charges include depreciation and salaries: [ \text{Total annual fixed charges} = \text{Depreciation} + \text{Salaries and maintenance} = 5 \times 10^6 + 1.4 \times 10^6 = 6.4 \times 10^6 \text{ Rs} ]

  6. Compute Cost per kW for Fixed Charges The fixed cost per kW is calculated as: [ \text{Cost per kW} = \frac{\text{Total annual fixed charges}}{\text{Maximum demand}} = \frac{6.4 \times 10^6}{40 \times 10^3} = 160 \text{ Rs} ]

  7. Calculate Annual Running Charges The annual running charges can be calculated as: [ \text{Running charges} = 0.8 \times 7,00,000 = 5.6 \times 10^6 \text{ Rs} ]

  8. Compute Cost per kWh for Running Charges To find the cost for running charges per kWh generated: [ \text{Cost per kWh} = \frac{\text{Running charges}}{\text{Units generated}} + \text{Royalty} ] Royalty is given as Re. 1 per kWh, so: [ \text{Total Cost per kWh} = \frac{5.6 \times 10^6}{210.24 \times 10^6} + 1 ]

  9. Calculate Final Costs Final calculations:

  • Run the fractions to determine the cost in Rs.
  • Combine both fixed and running charges for total generation cost.

The generation cost is Rs 160 for fixed charges and approximately Rs 1.027 for running charges, leading to a total generation cost per kWh of approximately Rs 161.03.

More Information

This calculation shows how fixed and running costs contribute to the overall generation cost. The concept of load factors and depreciation are critical in this context, highlighting how efficient operation can influence costs significantly.

Tips

  • Ignoring the load factor when calculating units generated.
  • Forgetting to include all components of fixed and running costs.
  • Misapplying percentages when calculating depreciation.

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