Power Plant Economics

and Unit cost Calculations

Group Members
 SOHAIB IRFAN 15-ME-048

 HASEEB-UR-REHMAN 15-ME-124

 MEHTAB ALAM 15-ME-172

 MOBEEN ANJUM 15-ME-192

What is Economics ?
 Economics is the social science that
studies the production, distribution, and
consumption of goods and services.
Economics in Power Plant
Capital Cost :
It is the total cost needed to bring a project
to a commercially operable status.

Debt:
An amount of money owed by a person,
firm or government (the borrower) to a
lender.
Equity:
Equity represents funds contributed by the
owners(stockholders).

Debt-Equity ratio:
The debt-to-equity ratio (D/E) is a financial
ratio indicating the relative proportion of
shareholders' equity and debt used to
finance a company's assets.
Return on Equity:
ROE is a measure of how well a company
uses investments to generate earnings
growth.

Working Capital:
Working Capital refers to the funds
invested in the current assets of a firm such
as raw materials, work-in-progress, finished
goods, receivables, cash etc.
Depreciation:
The decrease in the value of the power plant
equipment and building due to constant use is
known as depreciation.

Plant Load factor:

Plant Load Factory (PLF) is the ratio between
the actual energy. generated by the plant to
the maximum possible energy that can be.
generated with the plant working at its rated
power and for a duration. of an entire year.
Gross Calorific Value:
The heat produced by combustion of unit
quantity of a solid or liquid fuel when
burned at constant volume

Heat rate:
The heat energy input in kcal required to
generate one kWh of electrical energy at
generator terminals of a thermal generating
station
Calculations:
Conculsion:
 The fixed cost and the variable cost of
the power generated by thermal power
plant of 660 MW were found to be
Rs1.65 and Rs. 1.406 respectively. Hence
the total generation cost would be
Rs.3.05/unit.
References:
 [1] R. K. Rajput, Power Plant Engineering:
Laxmi Publications, Delhi, ( Edition 3)2006
 [2] P.K.Nag, Heat Power Engineering:
(Edition5) 2007
 [3] Cen PEEP volume 2009
 [4] NTPC PMI Noida volume 5
 [5] National productivity council volume
on energy management.
END