Electrical Engineering ⇒ Topic : Expression of Cost of Electrical Energy

Expression of Cost of Electrical Energy

The overall annual cost of electrical energy generated by a power station is expressed in the following two forms:

(i) Three part form

                           Total annual cost of energy = Fixed cost + Semi-fixed cost + Running cost

                                                                       = Rs (A + B kW + C kWh)

where A is annual fixed cost independent of maximum demand and energy output, B is a constant,which when multiplied by maximum kW demand on the station gives the annual semi-fixed cost,and C is a constant, which when multiplied by kWh output per annum gives the annual running.

(ii) Two part form

                           Total annual cost of energy = Rs (A kW + B kWh)

where A is a constant, which when multiplied by maximum kW demand on station gives the annual cost of the first part and B is a constant, which when multiplied by the annual kWh generated gives the annual running cost