Electrical Engineering ⇒ Topic : Economics of power station
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Daniel
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ECONOMICS OF POWER GENERATION It is defined as the art of determining the per unit (i.e., one kWh) cost of production of electrical energy. The two following terms must be noted: Interest: The cost of use of money is known as interest. To construct a power station huge capital is usually borrowed from banks. The supply company is bound to pay back the annual interest. Depreciation: The decrease in the value of the power plant equipment and building due to constant use is known as depreciation | |
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