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Power Plant Operations and Economics

The document discusses the combined operation of power plants, emphasizing the importance of interconnected systems for economic efficiency and optimal power generation. It outlines the criteria for selecting power plants based on load profiles, fuel availability, and operational flexibility, while detailing the requirements for base and peak load plants. Additionally, it covers the types of costs associated with electrical energy and various tariff structures for consumers.
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0% found this document useful (0 votes)
42 views38 pages

Power Plant Operations and Economics

The document discusses the combined operation of power plants, emphasizing the importance of interconnected systems for economic efficiency and optimal power generation. It outlines the criteria for selecting power plants based on load profiles, fuel availability, and operational flexibility, while detailing the requirements for base and peak load plants. Additionally, it covers the types of costs associated with electrical energy and various tariff structures for consumers.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

UNIT V

• Combined operation of power plants – plant


selection, choice of size and number of generator
units, interconnected systems, real and reactive
power exchange among interconnected systems.
Major electrical equipment in power plants, DC
systems in power plants, station control - switch
yard and control room. Economic considerations
– types of costs, tariff and consumers.
Combined operation of different power plant
• Different types of power plants are located in places best suited to
each type.
• Hydro-electric power plants are developed only at sites where a
huge quantity of water is available at sufficient head, and where
storage of water is possible by use of dams in naturally favorable
positions
• Where as steam, nuclear and diesel power plants can be located at
or near the load centers.
• In order to have most economic operation and ensure optimum
utilization it becomes necessary to operate various power plants
located in region in an integrated system.
• For this purpose all the power plants are connected together, (the
system is called the interconnected system) and centrally
supervised and controlled.
• Proper coordination of the generation of electrical
power in a group of power plants connected to a
common grid system leads to considerable saving as
compared with the same loads fed from a number of
independent power plants.
• It enables the total generating capacity to be reduced,
since less spare capacity is required.
• Secondly, it allows the system to be planed so that the
maximum the power plant to be loaded so that the
minimum amount of fuel is consumed.
Load Division between power stations
• A load duration curve illustrates the variation of a certain load in a
downward form such that the greatest load is plotted in the left
and the smallest one in the right. On the time axis, the time
duration for which each certain load continues during the day is
given.
• When the load curve has a very
high peak value, it is usually
supplied for two or more power
stations by interconnection.
• Total load is divided into two parts.
A. Base Load B. Peak Load
• Base load is supplied by one
power station and other power
station takes care of the peak load.
Requirements of a plant supplying “Base Load”
• Minimum operation cost.
• Continuous supply of the load.
• Requirement of plant maintenance should be minimum.
• Plant should be such that it can easily be located near the load
centre.
• The no. of operators required should be minimum.
Requirements of a plant supplying
“Peak Load”
• Low operating cost.
• Minimum capital cost.
• Capable of quick operations (from cold conditions).
• In the case of emergency, the plant should have the
capacity to withstand peak load for some time.
• Quick response to the change in load.
Steam Power Plants:
• Capital cost is more
• Can be located near to load center.
• Maintenance requirement is slightly higher.
• Hence they are used as base load plants
Nuclear Power Plant:
• Initial Cost is High
• Limited availability of fuel, not favoured.
• Whenever they are constructed they are used as base
load plants due to constant supply.
• They are not used as peak load plants.
Hydroelectric Power Plants:
• Operating cost is minimum
• Maintenance cost is lower.
• Initial cost is high
• Cant be located near to load.
• It can be easily started.
• No fuel required.
• Hence can be considered as peak load plant.
Diesel Power Plants:
• Due to limited generating capacity, it is not used as base load plant.
• Number of auxiliaries required is limited, so less maintenance.
• Easily start from cold conditions.
• They have good overload capacity.
• They have high thermal efficiency therefore less operating cost
than steam power plants.
• Hence can be used for peak load plants.
Plant selection — criteria and considerations
Main criteria
• Load profile (daily/seasonal peak, ramping needs)
• Fuel availability & cost
• Capital cost & O&M cost
• Operating flexibility (minimum load, ramp rate, start/stop time)
• Efficiency & heat rate
• Environmental & regulatory constraints
• Site constraints (water availability, land, grid connection)
• Strategic considerations (energy security, local industry)
• Policy & incentives (renewables mandates, carbon pricing)
Choice of size and number of generator units —
principles
Guiding principles
• Satisfy peak demand + reserve margin.
• Economies of scale: larger units often have lower $/kW but hurt
redundancy and N–1 security.
• Reliability tradeoff: many medium units vs fewer large units.
More smaller units can improve N–1 compliance.
• Operational flexibility: multiple small units allow partial loading
and better ramping.(This helps match supply to variable
demand more closely and reduces inefficient part-load
operation of large units.)
• Minimum stable generation and part-load efficiency matter.(A
200 MW thermal unit might have an MSG of 40 MW and best
thermal efficiency near 160–200 MW. Operating it at 40–80 MW
might have poor efficiency)
• Consider maintenance scheduling — stagger unit outages.
Rules-of-thumb
• Reserve margin typically 10–20% depending on system
characteristics.
• Sizing to meet N–1: ensure that after the largest single
credible outage, remaining available capacity ≥ peak load.

sizing units for a system


Problem: Peak load = 320 MW. Target reserve margin =
15%. Choose a combination of generator units to meet
capacity and N–1.
• Compute required capacity with reserve margin:
• Step: 320 × 0.15=48
• So margin = 48 MW.
• Required capacity = 320 + 48 = 368 MW.
• Therefore required installed capacity = 368 MW.
Propose unit combination (one option):
•Candidate units: 200 MW, 100 MW, 50 MW, 20 MW.
•Sum = 200 + 100 + 50 + 20 = 370 MW.
•370 MW ≥ 368 MW — capacity target met.

Check N–1 (largest unit outage):


•If 200 MW unit trips, remaining capacity = 370 − 200 = 170 MW.
•Remaining 170 MW < peak 320 MW → N–1 not satisfied.
•Conclusion: this combination fails N–1 criterion.

Alternative design to meet N–1:


•Use smaller largest unit. Example: 4 × 100 MW and 1 × 80 MW → total =
480 MW.
•Check reserve: 480 ≥ 368 yes.
•Largest single unit = 100 MW → after outage remaining = 480 − 100 = 380
MW ≥ 320 → N–1 satisfied.

Tradeoff: higher installed capacity (higher capital), but better reliability.


An interconnected power
system is formed when
two or more generating
stations or utilities are
connected through
transmission lines for
mutual assistance and
coordinated operation.
Real Power (P) Exchange Between Interconnected Systems
Power Transfer Equation
For two systems connected by a transmission line with reactance X, and voltage
magnitudes V₁ and V₂, with a phase angle difference δ, the real (active) power
transferred is:
Reactive Power (Q) Exchange Between Interconnected Systems
Reactive Power Flow Equation
𝑉1 𝑉1 − 𝑉2 cos 𝛿
𝑄=
𝑋
Coordination and Control
Real Power (P): Controlled by turbine/governor → Affects
frequency.
Reactive Power (Q): Controlled by excitation system → Affects
voltage.

Tie-Line Control

• Tie-line synchronizes two systems.


• Automatic Generation Control (AGC) restores frequency and
tie-line flow.
Reactive Power Compensation Methods
•Use of shunt capacitors / reactors to adjust voltage.
•Synchronous condensers and FACTS devices (SVC, STATCOM)
help in dynamic VAR compensation.

Stability Considerations
•Large interconnections risk synchronism loss if δ exceeds limits.
•Damping systems (governor and AVR controls) are crucial.
•Power system stabilizers (PSS) enhance dynamic stability.
•Real-time monitoring (SCADA/EMS) ensures secure operation.
Costs of Electrical Energy

Types of Costs
1. Fixed Cost (or Capacity Cost)
2. Semi-Fixed Cost (or Demand Cost)
3. Running Cost (Operating/Variable Cost)
1. Fixed Cost (or Capacity Cost)
• Independent of energy generated (kWh) or consumed.
• Related to plant capacity (kW/MW) – exists even if plant is idle.
Definition:
– Costs that remain constant irrespective of energy output.
Components:
– Capital Cost: Land, buildings, turbines, generators, boilers, installation.
– Fixed Annual Charges: Interest on borrowed capital.
– Depreciation: Replacement of worn-out equipment.
– Taxes and Insurance.
– Salaries of top management and administrative staff.
2. Semi-Fixed Cost (or Demand Cost)
Dependent on Maximum Demand (kW) but independent of total energy
generated (kWh).
Definition:
– Costs proportional to the maximum power the plant must be ready to
deliver.
Components:
– Salaries of operating and maintenance staff.
– Part of routine maintenance costs.
– Interest and Depreciation on transmission and distribution network.
3. Running Cost (Operating/Variable Cost)
• Directly proportional to actual energy generated (kWh).
• Ceases when the plant stops running.
Definition:
– Costs incurred only when the plant is actively generating
power.
Components:
– Fuel Cost (major for thermal plants).
– Lubricating oil, water, and chemical costs.
– Wages of operating labor.
– Maintenance and repairs due to wear and tear.
Total Annual Cost Formula
The total annual cost combines all three types of costs:
Total Cost = A + (B × Max Demand in kW) + (C × Energy Generated in kWh)
Where:
A = Fixed Cost
B = Semi-Fixed Cost Rate
C = Running Cost Rate

• A represents capital-related charges.


• B relates to demand readiness.
• C covers actual generation costs.
Types of loads/consumers
• Residential load: This type of load includes domestic lights, power
needed for domestic appliances such as radios, television, water
heaters, refrigerators, electric cookers and small motors for
pumping water.
• Commercial load: It includes lighting for shops, advertisements and
electrical appliances used in shops and restaurants etc.
• Industrial load: It consists of load demand of various industries.
The magnitude of this type of load depends on the type of
industry.
• Municipal load: It consists of street lighting, power required for
water supply and drainage purposes. This pumping process occurs
at the night time only.
• Irrigation load: This type of load includes electrical power needed
for pumps driven by electric motors to supply water to fields.
• Traction load: It includes trams, cars, trolley, buses and railways.
This type of load has wide variation depends on time
Tariff Structure
• Tariff is the rate or method by which a utility charges
consumers for consuming electrical energy.
Objectives of a Tariff:
[Link] Recovery: Recover all Fixed, Semi-Fixed, and
Running costs, plus Transmission & Distribution losses.
[Link]: Earn a reasonable return on the capital invested.
[Link]: Rates should be fair to different consumer
classes (e.g., industrial vs. residential).
[Link]: Must be easy for the average consumer to
understand.
[Link]: Must be designed to encourage greater
use of electricity and improve the consumer's Load Factor.
Types of Tariffs:
• Simple,
• Flat Rate,
• Block Rate,
• Two-Part,
• Maximum Demand,
• Power Factor, and
• Three-Part Tariffs
Simple Tariff
Flat Rate Tariff
Block Rate Tariff
Two-Part Tariff
Maximum Demand Tariff
Power Factor Tariff
Three-Part Tariff

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