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Economic Consideration in Electrical and Electronics

1) in how many groups the total cost of electrical energy generated may be divided ?
ANS :
The cost of generating electrical energy can be broadly divided into three parts , e.g,
i)            Fixed cost
ii)         Semi fixed cost and
iii)       Running or operating cost

2) what do you mean by “ fixed cost “ , “ semi fixed cost “ and “ running cost “ ?
ANS :
i)            Fixed cost means the standing cost which depends on the installed capacity of the generating station and is independent of the maximum demand and the energy output .
ii)         Semi fixed cost means the standing cost which depends upon the maximum demand but is independent of energy produced .
iii)       Running cost means the operating cost which depends upon the number of units of electrical energy generated.

3) what items constitute the fixed cost , semi fixed cost and running cost of generation of electrical energy ?
ANS :
The fixed cost constitutes the annual cost of central organization of the plant , interest on the capital cost of land and salaries of high officials .
The semi fixed cost constitutes the annual interest and depreciation on the capital cost of the generating plant , transmission & distribution networks ,building and other civil engineering works  , all types of taxes and insurance charges , salaries of management and clerical staff and yearly compensation given to the workers .
The running cost constitutes the annual cost of fuel , lubricating oil , water , maintenance and repair cost of equipment and wages and salaries of operational and maintenance staff and supervisory staff .

4) what do ypu mean by “ depreciation “ and “ annual depreciation cost “ of an electric power plant ? what are the different methods commonly used to determine the depreciation cost ?
ANS :
Depreciation as applied to power plant is the result of deterioration due to some physical action , e.g, wear and tear , decay or corrosion an also lack of adaptation to function caused by obsolescence and inadequacy .
Annual depreciation cost means a certain amount set aside annually to produce a sufficient sum at the end of the probable life for replacing the plant and machinery by new ones which depends upon the type and make of such equipments .
The methods for determining the depreciation cost are
i)            Straight line method
ii)         Diminishing value method ,
iii)       Sinking fund method .

5) what is meant by load curve ?
ANS : 
Load curve is the graph of load demands on a system plotted against time in hours .

6) what information gives the load curve ?
ANS : 
Load curve gives the following informations :
i)            It determines the size and number of units required for a system.
ii)         The variation of load during the different hours of the day .
iii)       The maximum demand can be obtained from the peak of the curve .
iv)       It gives the load factor of the area in which it is connected .

7) what is load duration curve ?
ANS :
The load duration curve is the graph showing the duration of a particular demand or load with the loads plotted against the number of hours of the percentage of the period for which it exists in descending order of magnitudes . this curve is useful in calculating the total requirements of energy to be produced , the load factor , the plant capacity factor and the plant use factor .

8) what is integrated load duration curve ?
ANS :
The integrated load duration curve is the graph showing the total number of units generated for the given demand with the demand in KW or MW plotted as ordinate against the units generated as the abscissa .

9) what do you mean by “ mass curve “?
ANS :
The mass curve is the graph showing the total energy consumed by the load upto a particular time in a day with the KWh plotted as ordinate and time  as abscissa.

10) what do you mean by connected load ?
ANS :
The connected load on any system is the combined ratings of all the apparatus i.e, total loads on consumer’s premises which are connected to the system .

11) what is average demand ?
ANS :
The average demand is the sum of all the demands divide by the total time .

12) what do you mean by maximum demand ?
ANS :
Maximum demand of an installation is the greatest of all the demands that have occurred during a given period of time say 30 minutes or 60 minutes .

13) what is load factor ?
ANS :
The ratio of the average demand to the maximum demand is known as the load factor .
Load factor (L.F) = ( average demand / maximum demand  ).


14) the maximum demand of a consumer is 80 KW and his daily energy consumption is 1200 units . what is his load factor ?
ANS :
L.F. = 1200 / ( 24 x 80 ) = 62.5 %

15) what is demand factor ?
ANS :
The ratio of the maximum demand of the power to the total connected load of any system is known as demand factor
Demand factor = maximum demand / connected load .

16) what is diversity factor ?
ANS :
The ratio of the sum of the maximum demands of different consumers to the maximum demand of the whole system is termed as the diversity factor .
Diversity factor (D.F) = ( sum of maximum demands of consumers / maximum demand on the system ).

17) how can a high diversity factor be obtained ?
ANS :
A high diversity factor can be obtained by
i)            Giving incentives to mainly consumers for using electricity in the night or light load periods .
ii)         Using daily light saving,
iii)       Staggering the office timings ,
iv)       Having different time zones in the country ,
v)          Having two part tariff in which the consumer has to pay an account for maximum demand plus a charge for each unit of energy consumed .

18) why is the load factor of a supply system improved by an increase in diversity factor ?
ANS :
Since the value of the maximum demand on the power system becomes less for greater value of the diversity factor of given consumers , therefore the load factor will be improved by an increase in diversity factor as a result of which a power station of given installed capacity will be in a position to supply more numbers of consumers .

19) what is the effect of higher diversity factor on the cost per unit generated ?
ANS :
Diversity factor has the direct effect on the fixed charges of unit generated . greater the value of the diversity factor , less will be the value of the fixed charges per unit generated .

20) what is coincidence factor ?
ANS :
Coincidence factor is the reciprocal of the diversity factor which is always less than unity .

21) what is the capacity or plant factor ?
ANS :
The plant factor of a generating station is defined as the ratio of the average load on the generators to the total rated capacity of the station .

22) what is utilization factor ?
ANS :
The ratio of the maximum demand on the power station to the rated capacity of the power station is known as utilization factor .

23) what do you mean by “ plant use factor “ ?
ANS :
Plant use factor is the ratio of actual energy generated during a given period to the product of rated capacity of the plant and the number of operating hours during the period , it is also known as plant operating factor .

24) what is the effect of load factor and diversity factor on the cost of power generation  ?
ANS :
As the values of load factor and diversity factor increases  the overall cost per unit generation decreases .

25) which factors are considered in deciding the number of generators , their sizes and preparing the operating schedule of a power station ?
ANS :
Load curves , diversity factor , demand factor and maintenance facility are considered .



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