How to calculate annual cost of electrical energy generated by a power station?

The overall annual cost of electrical energy generated by a power station can be expressed in two forms viz three part form and two part form. (i) Three part form. In this method, the overall annual cost of electrical energy generated is divided into three parts viz fixed cost, semi-fixed cost and running cost i.e.

Does a power station generate more units?

In other words, if the power station generates more units, it will have higher running cost and vice-versa. The overall annual cost of electrical energy generated by a power station can be expressed in two forms viz three part form and two part form. (i) Three part form.

How to determine the cost of production of electrical energy?

The problem of determining the cost of production of electrical energy is highly complex and poses a challenge to power engineers. There are several factors which influence the production cost such as cost of land and equipment, depreciation of equipment, interest on capital investment etc.

Why should a power station be designed and built?

While designing and building a power station, efforts should be made to achieve overall economy so that the per unit cost of production is as low as possible. This will enable the electric supply company to sell electrical energy at a profit and ensure reliable service.

Why do power stations have a higher running cost?

Since these charges depend upon the energy output, the running cost is directly proportional to the number of units generated by the station. In other words, if the power station generates more units, it will have higher running cost and vice-versa.

Do you need a preliminary estimate if you build a substation?

If you build substations, you [] The need for accurate preliminary estimates is never more apparent than in the electric power industry. Projects such as new substations are constantly being considered for capital expense and budgeting.