Methods of Determining Depreciation: There is reduction in the value of the equipment and other property of the plant every year due to depreciation. Therefore, a suitable amount (known as depreciation charge) must be set aside annually so that by the time the life span of the plant is over, the collected amount equals the …
Cost of Electrical Energy: The total Cost of Electrical Energy generated can be divided into three parts, namely ; Fixed cost ; Semi-fixed cost ; Running or operating cost. (i) Fixed cost: It is the cost which is independent of maximum demand and units generated. The fixed cost is due to the annual cost of central …
Introduction to Economics of Power Generation: A power station is required to deliver power to a large number of consumers to meet their requirements. 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 …