How do you calculate the generation cost of a power station?
If 20% of this expense is also chargeable as fixed charges, calculate the generation cost in two part form. Example 4.10. The annual working cost of a power station is represented by the formula Rs (a + b kW + c kWh) where the various terms have their usual meaning.
What are the fixed costs of power generation?
The fixed costs of power generation are essentially capital costs and land. The capital cost of building Central Station generators vary from region to region, largely as a function of labor costs and "regulatory costs," which include components like obtaining site permits, environmental approvals, and so on.
What are fixed and variable costs of Central Station generation?
Like any other production technology [2-3], central station generation entails fixed and variable costs. The fixed costs are relatively straightforward, but the variable cost of power generation is remarkably complex. The fixed costs of power generation are essentially capital costs and land.
What are the costs of a power plant?
Fixed and Operating Costs of Power Plants 3. Interest and Depreciation. Generation Cost of Power Plants: The generation cost can, broadly be divided as follows: 1. Fixed Cost: The annual fixed cost consists of the interest on the total investment, all types of taxes and insurance charges, salaries of high officials, management and clerical staff.
How to calculate annual working cost of a power station?
Annual cost of salaries, maintenance charges etc. is Rs 7,00,000. If 20% of this expense is also chargeable as fixed charges, calculate the generation cost in two part form. Example 4.10. The annual working cost of a power station is represented by the formula Rs (a + b kW + c kWh) where the various terms have their usual meaning.
What is the cost of use of money in a power station?
The cost of use of money is known as interest. A power station is constructed by investing a huge capital. This money is generally borrowed this amount. Even if company has spent out of its reserve funds, the interest must be still allowed for, since this amount could have earned interest if deposited in a bank. Therefore, while calculating the
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