1

INTRODUCTION

Electricity is produced in power plants can be of the following

types :

• Thermal

• Nuclear

• Hydraulic

• Gas turbine

• Geothermal

1
2

LOAD–DURATION CURVES

• A curve showing the load demand variations of consumers with

respect to time is known as load curve.

2
3

1. Load factor,

2. Capacity factor (or plant factor),

3
4

3. Reserve factor,

4. Demand factor,

5. Diversity factor,

4
5

5
6

6
7

LOCATION OF POWER PLANTS

For conventional base load thermal power plants, the following factors
are to be considered:
• Availability of cooling water
• Availability of fuel
• Distance from the centre of gravity of load demand
• Cost of land
• Character of soil
• Main wind direction and water currents in cooling water source (sea,
lake or river)
• With coal-fired stations, disposal of ash
• If the plant is erected far from a town, accommodation for staff
• Rail and road connections
• Security considerations

For nuclear power plants two additional factors are to be considered:

• Density of population in the vicinity.
• Danger of earthquakes. 7
8

POWER PLANT ECONOMICS

The cost per kWhnet is determined by:

• Fixed costs (FC), mainly interest, depreciation, insurance, taxes,
depending on the capital invested, i.e. on the construction costs of
the plant including the cost of the land.
• Operation and maintenance (O & M) costs covering salaries and
wages, overhauling of equipment, repairs including spare parts,
water, lubricating oil, chemicals and miscellaneous expenses.
• Fuel costs, dependent on the amount of electricity generated.
• kWhnet of electricity sent out per year.

Total annual costs (Ct) in a power plant

The reliability of a power plant

8
9

Construction Costs

9
10

Fixed Costs and Depreciation

Two methods of accumulating the money for the depreciation fund:

10
• S
11

11
12

12
13

Present-Worth Concept

13
14

Incremental Heat Rate

Performance of a generating plant

14
15

15
16

16
17

Economic Scheduling Principle

According to the economic scheduling principle, the load is so
distributed that at any moment all generating units will have the same
incremental heat rates.

17
18

Effect of Load Factor on Cost per kWh

18
19

INDIAN ENERGY SCENARIO

19
20

20
21

21
22

COAL-FUELLED ELECTRICITY GENERATING UNIT

22
23

THE END

23