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8/10/2019 ppt 10. Economics of Power Utilization - Large fonts.pptx
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EE 2802 Applied Electricity
Economics of Power Utilization
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Contents
1.Cost of electric power
2.Factors influencing costs & tariffs
3.Load curve
4.Tariff
5.Reduction of energy costs
6.Power factor correction
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1. Cost of Electric Power
Fixed cost
Running / Operating cost
All should be considered before fixing
the final kWh charges for the consumers
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Fixed Cost Operating Cost
Interest on capital
investment
Most of the fuel cost
Allowance for
depreciation
Small portion of
salaries & wages
Taxes & insurance Repair &
maintenance
Most of the salaries& wages
Small portion of the
fuel cost
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2. Factors Influencing Costs &
Tariffs
1. Demand
2. Diversity of demand
- Maximum demand of various
consumers not occur simultaneously- This results in lower costs of electricenergy
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3. Load Factor
Equipments are selecting for maximum
demand
Fully occupied or not, there are fixed
charges
Poor load factors -> charge per kWh high
To improve load factor -> accepting off-
2. Factors influencing Costs &
Tariffs
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4. Power Factor
Productive power - consumed in the
resistive loads
Non-productive power consumed in
inductive and capacitive loads
Low power factor -> greater non-productive
current
2. Factors influencing Costs &
Tariffs
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3. Load Curve
Following information can be obtained
Maximum load
Size of generator unit required
Daily operating schedule
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CEB Tariff - Domestic
Fixed Charge
Charge
(Rs/month)
Unit Charge
(Rs/kWh)
Up to 30 units 60.00 3.00
30 ~ 60 units 90.00 4.70
60 ~ 90 units 120.00 7.50
90 ~ 180 unitsunits
180.00 16.00
180 ~ 600
units
240.00 25.00
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CEB Tariff - Industry
FixedCharge
(Rs/month)
UnitCharge
(Rs/kWh)
DemandCharge
(Rs/kVA)
I-1 240.00 10.50
I-2 3000.00 9.30 675.00
I-3 3000.00 9.10 650.00
I-2 (TD) Peak 3000.00 24.60 650.00
Offpeak
8.40
I-3 (TD) Peal 3000.00 23.00 650.00
Off 8.00
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Example
A consumer has a maximum demand of10kW with a load factor of 60% and p.f.
0.8 lag. The traffic in force is Rs. 650.00
per kVA of max. demand per month, Rs.9.10 per kWh and Rs. 3000.00 as the fixed
charge.
a. Calculate saving in his monthly bill if heimproves p.f. to 0.9 lag
b. Show the effect of improving load factor
to 80% with the same max. demand and12
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5. Reduction of Energy Cost
How to reduce energy cost?
Monitor energy consumption
Choose energy efficient appliances andmethods
Reducing energy consumption makes;Reduce energy cost
Reduce pollution and make their
communities greener13
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6. Power Factor Correction
p.f. of all AC motors and transformers is high current14
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Disadvantages of low power factor
Line losses (I2R) is high
Large equipment are required
highcapital cost
Large voltage drop need extra
regulation equipmentLow efficiency
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6. Power Factor Correction
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Power factor improvement
Inject a leading current into the circuit1. Installation of static capacitors
2. Installation of synchronous motors
3. Phase advancers
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6. Power Factor Correction
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