Unit 1

Conventional Energy Generation Methods

INTRODUCTION
In Thermal Power Station fuel burns & use the resultant to make the
steam, which derives the turbo generator. The Fuel i.e. coal is burnt in
pulverized from. The pressure energy of the steam produce is converted
into mechanical energy with the help of turbine. The mechanical energy is
fed to the generator where the magnet rotate inside a set of stator
winding & thus electricity is produced in India 65% of total power is
generated by thermal power stations. To understand the working of the
Thermal Power Station plant, we can divide the whole process into
following parts.

COAL FLOW
In coal fired plants, raw material are air & water in PTPS, coal is transported through
Railway wagons from M/s Coal India & is kept reserved on a buffer stock. The brought out
to the station is unloaded with the help of wagon tippler. After unloading, the coal is sent to

crusher house with the help of conveyor belts. The coal which is now reduced to very small
pieces is sent to the coal bunkers with the help of conveyor belt. The raw coal is fed to coal
mills through raw coal feeders raw coal feeders basically regulate raw coal to pulverized coal
pipes. A position of the primary air is heated utilizing the heat of the fuel gases & then mixed
with the cold air as per requirement by the pulverized coal. Normally the temperature is
maintained at 60 to 70 degrees. The coal is now burnt in the furnace using oil in the
beginning showered through the nozzles at different elevations in the furnace. To provide air
for combustion, the heat of the flue gases also heat it the heat produced due to combustion is
utilized for the conversion of water into steam. This water is stored in the boiler drum. There
are two sets of pipes attached to the drum, one called riser & other known as down corner
through which the water comes to the ring header & steam moves up due to the density
difference of water & steam. Its steam is super heated using super heaters & meanwhile the
flue gases are through out in the atmosphere through chimney.
STEAM FLOW
The super heated steam is sent to the turbine through pipelines there are three turbines in the
units, using this steam at different temperature & pressures. After passing through high
pressure turbine the steam is send to the reheater for rising the temperature of the steam.
After reheating the steam is sent to the intermediate pressure turbine through reheated line.
Here it losses most of its temperature & pressure & finally sent to low pressure turbine. The
uses of three different turbines help in increasing the efficiency of the plant. The turbine in
turn connecting with a generator produces electricity. Then this electricity is stepped upto
220 KV with the help of step up transformer & supplied to various sub-stations grids.
Meanwhile, the steam through low pressure (L.P.) Turbine is condensed and the condensed
water is stored in hot well.
WATER FLOW
The condensed water is extracted from the hot well through condensate extraction pumps &
sent to the boiler drum with the help of BOILER FEED PUMP (B.F.P.) before passing
through low pressure heater and dearater. While loss in water is make up from C.S. Tank,
which have D.M. Moor in it. The C.S. Tank is directly connected to hot well.

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The water used in condenser is sent to cooling tower for cooling. After cooling this water is
again sent to condenser with the help of circulating water pump. The loss is making from
raw water pump house through clarifier pump house.

COMPONENTS DESCRIPTION
1.

WAGON TIPPLER:

It is the machine which is used to tip the coal from the wagon. The coal tipped is directly
feed to conveyor belt. Its capacity is 12 wagon per hour.
2.

CRUSHER:
It crushes the coal into small pieces.

3.

COAL MILLS:

In it small pieces of coal are converted into pulverized from. They are 6 in number.
4.

FURNACE:
It is the chamber in which fuel burns & fire blows.

5.

BOILER DRUM:
It contains water for boiling.

6.

ELECTROSTATIC PRECIPITATOR:

In this we have electrodes which attract fly ash and extract it from flue gases so that it cannot
enter atmosphere.
7.

CHIMENY:
It is used to release flue gases into the atmosphere.

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8.

TURBINE:

Turbine is the part which revolves due to steam pressure. It is of three types.

9.

a)

High pressure turbine.

b)

Intermediate pressure turbine.

c)

Low pressure turbine.

TURBO GENERATOR:

It is the main machine which produces 250 MW electricity .It is (H 2O) water and H2
(Hydrogen) gas cooled therefore it is contained in cylindrical chamber.
10.

CONDENSER:

It condenses steam coming from low pressure turbine (L.P.T.) to hot water. By removing air
and other non-condensable gases from steam while passing through them.
11.

COOLING WATER (C.W.) PUMP:

This pump send water from cooling tower to condenser.

12.

COOLING TOWER:

It is used to coal the water its height is near about 143.5 mtrs. The hot water is led to the
tower top and falls down through the tower and is broken into small particles while passing
over the baffing devices. Air enters the tower from the bottom and flow upwards. The air
vaporizes a small percentage of water, thereby cooling water falls down into tank below the
tower from where it is pumped to the condenser and cycle is repeated.
13.

RAW WATER PUMP HOUSE:

It supplies raw water to the boiler.

14.

CLARIFIER PUMP HOUSE:

The water from raw is clear at clarifier by putting alum in it & filtering it & then supplied to
the condenser.
15.

CONDENSATE EXTRACTION PUMP:

C.E.P. pump is used to extract the condense water from the hot well and supply to the
deaerator after passing through L.P. heater & Economizer, so that high pressure steam in the
cylinder can be created.
16.

LOW PRESSURE HEATER:

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It is used to increase the temperature of water, in this way efficiency of system increases.

17.

DEAREATER:

It is used to remove air from water which is entrapped in the water molecules. It is very
important part because the entrapped air effect air drum badly.
18.

BOILER FEED PUM (B.F.P.):

It is the heaviest drive in the plant & supply water to boiler drum from dearator.
19.

HIGH PRESSURE HEATER (H.P.):

In this temperature of water increases. Thus efficiency further increases.

20.

ECONOMISER:

In this flue gases exchange heat to the water to increase system efficiency, causes saving in
fuel consumption (5 to 10%). Economizer tubes are made up of steel either smooth or
covered with fins to increase the heat transfer surface area.

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Page 48

GAS POWER PLANTS: OPEN CYCLE AND CLOSED CYCLE GAS TURBINE
PLANTS,
INTRODUCTION

The gas turbine obtains its power by utilizing the energy of burnt gases and air, which is at
high temperature and pressure by expanding through the several stages of fixed and moving
blades (stator and rotor). To get a high pressure (of the order of 4 to 10 bar) of working fluid,
which is essential for expansion a compressor, is required.
A simple gas turbine cycle consists of
(1) a compressor,
(2) a combustion chamber and
(3) a turbine.
Since the compressor is coupled with the turbine shaft, it absorbs some of the power
produced by the turbine and hence lowers the efficiency. The network is therefore the
difference between the turbine work and work required by the compressor to drive it. Gas
turbines are constructed to work mainly on oil and/or natural gas.
CLASSIFICATION OF GAS TURBINE POWER PLANT
The gas turbine power plants which are used in electric power industry are classified into
two groups as per the cycle of operation: Open cycle gas turbine; Closed cycle gas turbine.
OPEN CYCLE GAS TURBINE

Advantages
1. No warm-up time. Once the turbine is brought up to the rated speed by the starting motor
and the fuel is ignited, the gas turbine will be accelerated from cold start to full load without
warm-up time. The stipulation of a quick start and take-up of load frequently are the points
in favor of open cycle plant when the plant is used as peak load plant.
2. Low weight and size. The weight in kg per kW developed is less.
3. Fuels. Almost any hydrocarbon fuel from high-octane gasoline to heavy diesel oils can be
used in the combustion chamber.
4. Open cycle plants occupy comparatively little space.

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5. Open-cycle gas turbine power plant, except those having an intercooler, does not require
cooling water. Therefore, the plant is independent of cooling medium and becomes self
contained.
Disadvantages
1. The part load efficiency of the open cycle plant decreases rapidly as the considerable
percentage of power developed by the turbine is used to drive the compressor.
2. The system is sensitive to the component efficiency; particularly that of compressor. The
open cycle plant is sensitive to changes in the atmospheric air temperature, pressure and
humidity.
3. The open-cycle gas turbine plant has high air rate compared to the other cycles, therefore,
it results in increased loss of heat in the exhaust gases and large diameter ductwork is
necessary.
4. It is essential that the dust should be prevented from entering into the compressor in order
to minimize erosion and depositions on the blades and passages of the compressor and
turbine and so impairing their profile and efficiency. The deposition of the carbon and ash on
the turbine blades is not at all desirable as it also reduces the efficiency of the turbine.
Therefore, air filters and fuel treatment are necessary; combustion must also be handled with
a lot of care.

CLOSED CYCLE GAS TURBINE

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Advantages
1. The inherent disadvantage of open cycle gas turbine is the atmospheric backpressure at the
turbine exhaust. With closed cycle gas turbine plants, the backpressure can be increased, thus
increasing power rating. The density of the working medium can be maintained high by
increasing internal pressure range. The high density of the working fluid also increases the
heat transfer properties in the heat exchanger. Therefore the machine can be smaller and
cheaper than the machine used to develop the same power using open cycle plant.

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2. The closed cycle avoids erosion of the turbine blades due to the contaminated gases and
fouling of compressor blades due to dust. Therefore, it is practically free from deterioration
of efficiency in service.
3. The need for filtration of the incoming air which is a severe problem in open cycle plant is
completely eliminated.
4. Load variation is usually obtained by varying the absolute pressure and mass flow of the
circulating medium, while the pressure ratio, the temperatures and the air velocities remain
almost constant. This result in velocity ratio in the compressor and turbine independent of
the load and full load thermal efficiency maintained over the full range of operating loads.
5. As indirect heating is used in closed cycle plant, the inferior oil or solid fuel can be used in
the furnace and these fuels can be used more economically because these are available in
abundance. Even more encouraging prospects can be predicted with the possibility of using
renewable energy sources (solar towers for example).
6. Finally the closed cycle opens the new field for the use of working medium (other than air
as argon, CO2, helium) having more desirable properties. As we are going to see, the ratio
of the working fluid plays an important role in determining the performance of the gas
turbine plant.
7. The maintenance cost is low and reliability is high due to longer useful life.
8. The thermal efficiency increases as the pressure ratio (Rp) decreases. Therefore,
appreciable higher thermal efficiencies are obtainable with closed cycle for the same
maximum and minimum temperature limits as with the open cycle plant.
9. Starting of plane is simplified by reducing the pressure to atmospheric or even below
atmosphere so that the power required for starting purposes is reduced considerably.
Disadvantages
1. The system is dependent on external means as considerable quantity of cooling water is
required in the precooler.
2. Higher internal pressures involve complicated design of all components and high quality
material is required which increases the cost of the plant.
3. The response to the load variations is poor compared to the open-cycle plant,
4. It requires very big heat-exchangers as the heating of workings fluid is done indirectly.
The space required for the heat exchanger is considerably large. The full heat of the fuel is
also not used in this plant. The closed cycle is only preferable over open cycle where the
inferior type of fuel or solid fuel is to be used and
ample cooling water is available at the proposed site of the plant. However, closed cycle gas
turbine plants have not been used for electricity production, except in very limited cases.
APPLICATIONS OF GAS TURBINE IN POWER GENERATION
1. Gas turbine plants are used as standby plants for the hydro-electric power plants.
2. Gas turbine power plants may be used as peak loads plant and standby plants for smaller
power units.
ADVANTAGES OF GAS TURBINE POWER PLANT
1. It is smaller in size and weight as compared to an equivalent steam power plant
2. The initial cost and operating cost of the plant is lower than an equivalent steam power
plant.
3. The plant requires less water as compared to a condensing steam power plant.
4. The plant can be started quickly, and can be put on load in a very short time.

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5. There are no standby losses in the gas turbine power plant whereas in steam power plant
these losses occur because boiler is kept in operation even when the turbine is not supplying
any load.
6. The maintenance of the plant is easier and maintenance cost is low.
7. The lubrication of the plant is easy. In this plant lubrication is needed mainly in
compressor, turbine main bearing and bearings of auxiliary equipment.
8. The plant does not require heavy foundations and building.
9. There is great simplification of the plant over a steam plant due to the absence of boilers
with their feed water evaporator and condensing system.
DISADVANTAGES
1. Major part of the work developed in the turbine is used to derive the compressor.
Therefore, network output of the plant is low.
2. Since the temperature of the products of combustion becomes too high so service
conditions become complicated even at moderate pressures.
3. Proper air filtering and combustion control to prevent corrosion problems.

COMBINED GAS & STEAM PLANTS BASIC SCHEMES

In electric power generation a combined cycle is an assembly of heat
engines that work in tandem from the same source of heat, converting it
into mechanical energy, which in turn usually drives electrical generators.
The principle is that after completing its cycle (in the first engine), the
working fluid of the first heat engine is still low enough in its Entropy that
a second subsequent heat engine may extract energy from the waste
heat (energy) of the working fluid of the first engine. By combining these
multiple streams of work upon a single mechanical shaft turning an
electric generator, the overall net efficiency of the system may be
increased by 50 60 percent. That is, from an overall efficiency of say
34% (in a single cycle) to possibly an overall efficiency of 51% (in a
mechanically combination of two (2) cycles) in net Carnot thermodynamic
efficiency. This can be done because heat engines are only able to use a
portion of the energy their fuel generates (usually less than 50%). In an
ordinary (non combined cycle) heat engine the remaining heat (e.g., hot
exhaust fumes) from combustion is generally wasted.

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principle
of a combined cycle power plant (Legend: 1-Electric generators,
2-Steam turbine, 3-Condenser, 4-Pump, 5-Boiler/heat exchanger,
6-Gas turbine)
Working

Combining two or more thermodynamic cycles results in improved overall efficiency,

reducing fuel costs. In stationary power plants, a widely used combination is a gas turbine
(operating by the Brayton cycle) burning natural gas or synthesis gas from coal, whose hot
exhaust powers a steam power plant (operating by the Rankine cycle). This is called a
Combined Cycle Gas Turbine (CCGT) plant, and can achieve a thermal efficiency of around
60%, in contrast to a single cycle steam power plant which is limited to efficiencies of
around 35-42%. Many new gas power plants in North America and Europe are of this type.
Such an arrangement is also used for marine propulsion, and is called a combined gas and
steam (COGAS) plant. Multiple stage turbine or steam cycles are also common.
Other historically successful combined cycles have used hot cycles with mercury vapor
turbines, magnetohydrodynamic generators or molten carbonate fuel cells, with steam plants
for the low temperature "bottoming" cycle. Bottoming cycles operating from a steam
condenser's heat exhaust are theoretically possible, but uneconomical because of the very
large, expensive equipment needed to extract energy from the small temperature differences
between condensing steam and outside air or water. However, it is common in cold climates
(such as Finland) to drive community heating systems from a power plant's condenser heat.
Such cogeneration systems can yield theoretical efficiencies above 95%.
In automotive and aeronautical engines, turbines have been driven from the exhausts of Otto
and Diesel cycles. These are called turbo-compound engines (not to be confused with
turbochargers). They have failed commercially because their mechanical complexity and

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weight are less economical than multistage turbine engines. Stirling engines are also a good
theoretical fit for this application. A turbocharged car is also a combined cycle.

The thermodynamic cycle of the basic combined cycle consists of two power plant cycles.
One is the Joule or Brayton cycle which is a gas turbine cycle and the other is Rankine cycle
which is a steam turbine cycle.[1] The cycle 1-2-3-4-1 which is the gas turbine power plant
cycle is the topping cycle. It depicts the heat and work transfer process taking place in high
temperature region.
The cycle a-b-c-d-e-f-a which is the Rankine steam cycle takes place at a low temperature
and is known as the bottoming cycle. Transfer of heat energy from high temperature exhaust
gas to water and steam takes place by a waste heat recovery boiler in the bottoming cycle.
During the constant pressure process 4-1 the exhaust gases in the gas turbine reject heat. The
feed water, wet and super heated steam absorb some of this heat in the process a-b, b-c and
c-d.

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sThe steam power plant gets its input heat from the high temperature exhaust gases from gas
turbine power plant.[1] The steam thus generated thus can be used to drive steam turbine. The
Waste Heat Recovery Boiler (WHRB) has 3 sections: Economiser, evaporator and
superheater.
HYDRO POWER PLANTS:
Introduction
The water of the oceans and water bodies on land are evaporated by the
energy of the suns heat and gets transported as clouds to different parts
of the earth. The clouds travelling over land and falling as rain on earth
produces flows in the rivers which returns back to the sea. The water of
rivers and streams, while flowing down from places of higher elevations to
those with lower elevations, loose their potential energy and gain kinetic
energy. The energy is quite high in many rivers which have caused them
to etch their own path on the earths surface through millions of years of
continuous erosion. In almost every river, the energy still continues to
deepen the channels and migrate by cutting the banks, though the extent
of morphological changes vary from river to river. Much of the energy of a
rivers flowing water gets dissipated due to friction encountered with its
banks or through loss of energy through internal turbulence.
Nevertheless, the energy of water always gets replenished by the solar

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energy which is responsible for the eternal circulation of the Hydrologic

Cycle.
Hydropower engineering tries to tap this vast amount of energy available
in the flowing water on the earths surface and convert that to electricity.
There is another form of water energy that is used for hydropower
development: the variation of the ocean water with time due to the
moons pull, which is termed as the tide. Hence, hydropower engineering
deals with mostly two forms of energy and suggest methods for
converting the energy of water into electric energy. In nature, a flowing
stream of water dissipates throughout the length of the watercourse and
is of little use for power generation. To make the flowing water do work
usefully for some purpose like power generation (it has been used to
drive water wheels to grind grains at many hilly regions for years), it is
necessary to create a head at a point of the stream and to convey the
water through the head to the turbines which will transform the energy of
the water into mechanical energy to be further converted to electrical
energy by generators. The necessary head can be created in different
ways of which two have been practically accepted.

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Divert a part of the stream by creating a low-head diversion structure like

barrage shown in figure 2

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A series of integrated power developments along the same watercourse

form what may be called a multistage hydroelectric system in which each
portion of the river with a power plant of its own is referred to as a stage
(Figure 3). The head created by a dam put across a lowland river usually
ranges from 30 to 40m. In mountainous terrain, it may run over 200m .

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following sections briefly discuss the issues related to the fundamentals

of hydropower project development.

Hydropower potential
Electricity from water is usually referred to as Hydro-Power, where the term hydro is
the Greek word for water and hydropower is the energy contained in water. It can be
converted in the form of electricity through hydroelectric power plants. All that is
required is a continuous inflow of water and a difference of height between the water
level of the upstream intake of the power plant and its downstream outlet.

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In order
uniform
(metres)
a flow of

to evaluate the power of flowing water, we may assume a

steady flow between two cross-sections of a river, with H
of difference in water surface elevation between two sections for
Q (m3/s), the power (P) can be expressed as

where v1 and v2 are the mean velocities in the two sections. Neglecting the usually
slight difference in the kinetic energy and assuming a value of as 9810N/m 2, one
obtains the expression of power as

Since an energy of 1000Nm/s can be represented as 1kW (1kilo-Watt), one may

write the following:

The above expression gives the theoretical power of the selected river stretch at a
specified discharge.
In order to evaluate the potential of power that may be generated by harnessing the
drop in water levels in a river between two points, it is necessary to have knowledge
of the hydrology or stream flow of the site, since that would be varying everyday.
Even the average monthly discharges over a year would vary. Similarly, these
monthly averages would not be the same for consecutive years. Hence, in order to
evaluate the hydropower potential of a site, the following criteria are considered:
1. Minimum potential power is based on the smallest runoff available in the
stream at all times, days, months and years having duration of 100 percent.
This value is usually of small interest
2. Small potential power is calculated from the 95 percent duration discharge
3. Medium or average potential power is gained from the 50 percent duration
discharge
4. Mean potential power results by evaluating the annual mean runoff.
Since it is not economically feasible to harness the entire runoff of a river during
flood (as that would require a huge storage), there is no reason for including the
entire magnitude of peak flows while calculating potential power or potential annual
energy . Hence, a discharge-duration curve may be prepared (Figure 4) which plots
the daily discharges at a location in the decreasing order of magnitude starting from

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the largest daily discharge observed during the year and going upto the minimum
daily discharge.

From this annual discharge curve, a truncation is made at a discharge Qt

which is the discharge corresponding to a time of t days, where t can be
the median (say, 182 days or 50 percent duration, denoted by (Q182 or
Q50%), or a higher Qt (t less than 182 days) can be selected by
specialists who are familiar with the local conditions and future plans for
power supply. Accordingly, the annual magnitude of potential (theoretical)
energy can be computed in KWh as below and referring to Figure 4:

Where Qi denotes the daily mean flow during the period 365-t days and A,
the hatched area cut by Qt , where the area under the curve has a unit
m3day/s.

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PUMPED STORAGE PLANTS:

PHS is the only widely adopted utility-scale electricity storage technology.

As of 2009, there are hundreds of PHS stations operating with total
capacity of 127 GW worldwide [1]. Japan currently has the largest PHS
capacity in the world. Table 1 shows the installed PHS capacities in major
countries.

A PHS facility is typically equipped with pumps/generators connecting an

upper and a lower reservoir (Figure 1). The pumps utilize relatively cheap
electricity from the power grid during off-peak hours to move water from
the lower reservoir to the upper one to store energy. During periods of
high electricity demand (peak-hours), water is released from the upper
reservoir to generate power at higher price .

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FIGURE: PHS Diagram

The efficiency of PHS varies quite significantly due to the long history of
the technology and the long life of a facility. The round-trip efficiency
(electricity generated divided by the electricity used to pump water) of
facilities with older designs may be lower than 60%, while a state-of-theart PHS system may achieve over 80% efficiency.
NUCLEAR POWER PLANTS :
The purpose of a nuclear power plant is not to produce or release Nuclear Power. The purpose of a nuclear
power plant is to produce electricity. It should not be surprising, then, that a nuclear power plant has many
similarities to other electrical generating facilities. It should also be obvious that nuclear power plants have
some significant differences from other plants.
Of the several known methods to produce electricity, by far the most practical for large scale production and
distribution involves the use of an electrical generator. In an electrical generator, a magnet (rotor) revolves
inside a coil of wire (stator), creating a flow of electrons inside the wire. This flow of electrons is called
electricity. Some mechanical device (wind turbine, water turbine, steam turbine, diesel engine, etc.) must be
available to provide the motive force for the rotor.
When a turbine is attached to the electrical generator, the kinetic energy (i.e., motion) of the wind, falling
water, or steam pushes against the fan-type blades of the turbine, causing the turbine, and therefore, the
attached rotor of the electrical generator, to spin and produce electricity.

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Page 65

In a fossil-fueled power plant, heat, from the burning of coal, oil, or natural gas, converts (boils) water into
steam (A), which is piped to the turbine (B). In the turbine, the steam passes through the blades, which spins
the electrical generator (C), resulting in a flow of electricity. After leaving the turbine, the steam is converted
(condensed) back into water in the condenser (D). The water is then pumped (E) back to the boiler (F) to be
reheated and converted back into steam.

In a nuclear power plant, many of the components are similar to those in a fossil-fueled plant, except that the
steam boiler is replaced by a Nuclear Steam Supply System (NSSS). The NSSS consists of a nuclear reactor
and all of the components necessary to produce high pressure steam, which will be used to turn the turbine
for the electrical generator.

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The most common fuel for the electrical producing reactor plants in the United States is uranium. The
uranium starts out as ore, and contains a very low percentage (or low enrichment) of the desired atoms (U235). The U-235 is a more desirable atom for fuel, because it is easier to cause the U-235 atoms to fission
(split) than the much more abundant U-238 atoms. Therefore, the fuel fabrication process includes steps to
increase the number of U-235 atoms in relation to the number of U-238 atoms (enrichment process).Like a
fossil-fueled plant, a nuclear power plant boils water to produce electricity. Unlike a fossil-fueled plant, the
nuclear plants energy does not come from the combustion of fuel, but from the fissioning (splitting) of fuel
atoms.

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Once the fuel has been enriched, it is fabricated into ceramic pellets. The pellets are stacked into 12-foot
long, slender metal tubes, generally made of a zirconium alloy. The tube is called the fuel cladding. When
a tube is filled with the uranium pellets, it is pressurized with helium gas, and plugs are installed and welded
to seal the tube. The filled rod is called a fuel rod. The fuel rods are bundled together into fuel
assemblies or fuel elements. The completed assemblies are now ready to be shipped to the plant for
installation into the reactor vessel.

At the nuclear power plant, the fuel assemblies are inserted vertically into the reactor vessel (a large steel
tank filled with water with a removable top). The fuel is placed in a precise grid pattern known as the
reactor core.

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There are two basic types of reactor plants being used in the United States to produce electricity, the boiling
water reactor (BWR) and the pressurized water reactor (PWR). The boiling water reactor operates in
essentially the same way as a fossil-fueled generating plant. Inside the reactor vessel, a steam/water mixture
is produced when very pure water (reactor coolant) moves upward through the core absorbing heat. The
major difference in the operation of a boiling water reactor as compared to other nuclear systems is the
steam void formation in the core. The steam/water mixture leaves the top of the core and enters two stages
of moisture separation, where water droplets are removed before the steam is allowed to enter the steam line.
The steam line, in turn, directs the steam to the main turbine, causing it to turn the turbine and the attached
electrical generator. The unused steam is exhausted to the condenser where it is condensed into water. The
resulting water (condensate) is pumped out of the condenser with a series of pumps and back to the reactor
vessel. The recirculation pumps and the jet pumps allow the operator to vary coolant flow through the core
and to change reactor power. Boiling water reactors are manufactured in the United States by the General
Electric Company, San Jose, California. Boiling water reactors comprise about one-third of the power
reactors in the United States.

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The pressurized water reactor (PWR) differs from the boiling water reactor in that steam is produced in the
steam generator rather than in the reactor vessel. The pressurizer keeps the water that is flowing through the
reactor vessel under very high pressure (more than 2,200 pounds per square inch) to prevent it from boiling,
even at operating temperatures of more than 600EF. Pressurized water reactors make up about two-thirds of
the power reactors in the United States.
Pressurized water reactors were manufactured in the United States by Westinghouse Electric Corporation
(Pittsburgh, Pennsylvania), Babcock and Wilcox Company (Lynchburg, Virginia), and the Combustion
Engineering Company (Windsor, Connecticut).

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Another type of reactor uses helium gas instead of water as its media for removing heat from the core. The
only high temperature gas-cooled reactor (HTGR) in the United States was the Fort St. Vrain plant in
Colorado. The plant was manufactured by General Atomic Company of La Jolla, California. High
temperature gas-cooled reactors are widely used in other countries.

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REVIEW QUESTION
Q-1. Draw the schematic diagram of a modern thermal power station and explain its
operationwith its important components.
Q-2. Draw diagrams and explains the difference between open cycle and closed cycle
gasturbine plant.
Q-3. Explain with a neat sketch of pumped storage plant.
Q-4. Give a schematic view of a nuclear power plant.
Q-2. What materials are used for fuel, coolant and moderator in nuclear plants? Describe
merits and problems of nuclear power plants as compared to conventional thermal plants.

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Unit 2
New Energy Sources
Net energy analysis in power generation has been introduced as a feasible and practical
method for evaluating the engineering, economic and environmental aspects of power
generation systems. It compares total direct and indirect energy investments in construction
and operation of power plants with their life time energy outputs. A number of studies have
been performed considering net energy analysis for electricity generation technologies,
including fossil-fuelled technologies (large scale coal, oil and natural gas red), nuclear power
and renewable energy systems (small medium hydro, geothermal, wind, wave, tidal, ocean
thermal energy conversion, solar thermal, photovoltaic, and gasied biomes power plants) .
The analyzed technologies are investigated for total energy processes through their
processing, transportation and use in power plants, the dismantling of power plants to
management and disposal of wastes.
Electricity generation systems consume fossil fuels directly and indirectly in the various
activities of the full energy-chain. Fig. 2 gives the rates of fossil fuel consumption associated
with the direct and indirect energy consumption for generating 1 kWh of net electricity [5].
These rates were obtained by subtracting input electricity from output electricity. The
consumption rates are highest for fossil-fuelled power plants: 2455, 2518, and 2687 kcal/kWh
for oil, coal and LNG power plants, respectively. Fossil-fuelled power plants burn large
amounts of fossil fuels and 85% of total amount of fossil fuel for oil, coal and LNG-red plants,
respectively. Nuclear, hydro and geothermal power plants have the lowest fossil-fuel
consumptions:

IMPACT OF THERMAL, GAS, HYDRO AND NUCLEAR POWER STATIONS ON

ENVIRONMENT
Although the use of electricity is relatively benign, its generation is one of the world's
environmentally damaging activities, while the energy sector contributes

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Energy pay-back time=(capital energy for plant+operational energy_30 years]/[electricity

producedoperational energy).
c Energy ratio=electricity produced_30 years(capital energy except for plant_30
years+capital energy for plant+operational energy_30 years).
d Net energy balance=electricity produced_30 years(capital energy except for plant_30
years+capital energy for plant+operational energy_30 years).

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49% of greenhouse gases, electricity generation alone produces more than 25% of energyrelated carbon dioxide emissions. During the past 20 years, half of all increases in energy
related carbon dioxide emissions were from electricity generation .Emissions to the
environment have been the principal focus of energy impact studies: other signicant impacts
such as land disturbance and population displacement together with their economic and
social implications are less emphasized. Major impacts, such as depletion of natural resources
and large fuel and transport requirements that inuence a wide range of areas including
occupational and public safety as well as national transport systems, are generally ignored.
The quantity of toxic pollutants and waste generated from fossil-fuel plants are much more
than the quantities from other energy options (Fig. 3). In general, the pollution depends on the
impurity level of the fuel, with natural gas cleaner than oil and oil cleaner than coal. Table 2
presents emissions in kg/GWh of power-generating systems, for the full energy-chain,
including the fuel cycle and the construction of the plant. A 1000 MW(e) coal plant, without
abatement technology, produces annually an average of some 44 000 tonnes of sulphur
oxides and 22 000 tonnes of nitrous oxides that are dispersed into the atmosphere.
Additionally, there are 320 000 tonnes of ash containing 400 tonnes of heavy metals
arsenic, cadmium, cobalt, lead, mercury, nickel and vanadium quantities which ignore
energy-chain activities, such as mining and transportation Fossil-fuel plants using modern
abatement technology can decrease noxious gas releases as much as 10-fold, but signicant
quantities of solid waste can be produced in the process. Depending on the sulphur content,
solid-waste quantities from sulphur abatement procedures for a 1000 MW(e) plant are
annually as much as 500 000 tonnes from coal, more than 300 000 tonnes from oil and some
200 000 tonnes from natural gas sweetening procedures Fig. . The waste, which contains
small quantities of toxic substances, is commonly stored in ponds or used for landfall and
other purposes. Regulatory bodies increasingly categorize such waste as hazardous.A 1000
MW(e) nuclear-power plant does not release noxious gases or other pollutants and produces
annually only some 30 tonnes of discharged high-level radioactive.

spent-fuel along with 800 tonnes of low and intermediate level radioactive waste.Signicant
reductions in the volume of low level waste to be managed can be made through compaction.
In the USA, low-level solid waste from nuclear power plants has been reduced 10-fold over the
past decade to 30 m3 annually of compacted waste per plant a total of some 3000 m3 from
all operating plants. Industrial operations in the USA are estimated to produce annually more
than 50 000 000 m3 of solid toxic waste . The fossil fuels with their combustion-associated
CO2 emissions, and inherent CH4 emissions associated with their production and transport
are a separate category of high GHG emission factors, ranging from 500 to 1200 g CO2
equivalent
kW(e)h.
Future
energy-eciency
improvements
could
lower
these
emission
factorsconsiderably, but it is unlikely that the large gap between fossil fuels and the other
energy sources can be bridged. A major factor of uncertainty of natural gas is the release of
gas during production and transportation. The emission factors of non-fossil fuel energies
which are mature, viz. wind, geothermal and nuclear energy, are very low. They are in the range of 1070 g CO2
equivalent/kW(e)h. The emission factors of hydropower and sustainable biomass are uncertain

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due to diculties in accounting for the emissions of CH4 from anaerobic biodegradation from
the hydropower water reservoir and in-soil biomass (mainly roots), respectively. Hydropower
and sustainable biomass energy have emission factors in the range of 10400 and 4080 g
CO2 equivalent/kW(e)h, respectively. The renewable-energy sources, which are still under
development, viz. solar and ocean energies, show emission factors of 100300 g CO2
equivalent/kW(e)h (Fig. ). Generally, accounting for methane sources in the complete fuel
chain increases GHG emission-factors substantially. Table 3 shows the CO2 emissions from
selected plant types, together with their expected costs of electricity generation in the year
2000. It is clear that a trade- will still often be required between low cost and low CO2
emitting electricity-generating technologies, despite the projected fall in the cost of renewable
electricity. Scatter within the emission factors from dierent studies of an individual energy
source can be attributed to dierent methods and data bases. Data bases often are not up to
date. Uncertainties in the global warming potential of CH4 also add to the scatter in the
emission factors. The direct emissions of CO2 from nuclear-power generation are very low.
However, it releases some CO2 if indirect processes are taken into account. The direct and
indirect CO2 emissions from nuclear power generation were calculated.

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Page 77

GREEN HOUSE EFFECT (GLOBAL WARMING):

The sun produces radiation mainly in the ultraviolet (UV), visible (vis) and infrared (IR) regions of the
electromagnetic spectrum. When these reach the Earth, part is reflected back into space and part of it is
absorbed by the Earths surface. The part which is absorbed heats up the Earth which in turn then radiates some
of its energy out into space. The frequency at which anyn object emits radiation depends on its temperature. The
Earth, being that much cooler than the Sun, emits energy at a lower frequency and therefore longer wavelength
in the IR region.

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Page 79

Figure 2. The energy emissions of the Earth and the Sun.

A steady state is reached where the Earth is absorbing and radiating energy at the same rate, resulting in a fairly
constant average temperature. If there were no greenhouse effect at all then
the surface temperature would be about 256K or -17C (about the temperature of a domestic freezer) and life as
we know it could not exist because water, the which is fundamental to life,
would be a solid. However, the IR radiation emitted by the Earth can be absorbed by gases in
the troposphere and become trapped. The radiation is then re-emitted in all directions; some
back towards the Earth, which is known as the greenhouse effect. This leads to an increase in
temperature and global warming, making the average surface temperature of the Earth about
286K or 13C. It is an essential part of keeping our planet hospitable and helps to sustain life.
The gases which absorb and then re-emit IR are known as greenhouse gases.

Properties of a greenhouse gas

1. A greenhouse gas absorbs infrared radiation

When molecules interact with UV radiation the energy they absorb can break bonds. IR radiation is less
powerful as the photons contains less energy. Rather than breaking bonds it causes them to vibrate more
energetically. Advanced theory shows that a molecule will absorb IR radiation if the vibration causes a
change in its dipole moment. Oxygen, O=O, vibrates as a stretching and compression of the bond. Oxygen
does not absorb IR radiation as the molecule is symmetrical and does not have a dipole moment so there
can be no change in dipole moment on vibration.

pCarbon dioxide, CO2, vibrates in three different ways:

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Page 81

1. Which of the vibrations (a, b, c) will cause a change in dipole moment and so absorb IR radiation?
2. Two other gases which are present in the atmosphere are nitrogen, N 2, and water vapour, H2O. Predict
whether they will absorb IR radiation.
3. Of these gases which absorb IR radiation in the atmosphere, which is present in the
highest concentration? Methane, CH4, is another greenhouse gas. Although it is symmetrical and has no
permanent dipole moment, it can vibrate in ways which change its dipole moment and so will absorb IR
radiation.

2. A GREENHOUSE GAS ABSORBS ENERGY IN THE WAVELENTH RANGE 5-100 M

A computer generated typical radiance spectrum of the Earth (red line) and the theoretical (or black body)
emission at the Earths surface (blue line). Radiance is a measure of how much light is being emitted by an
object (in this case, the Earth.) The Earth does not emit much radiation outside the 5-100 m range and so
any gases which absorb other wavelengths will not contribute significantly to the greenhouse effect.

Enhanced greenhouse effect

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The two most significant greenhouse gases in the atmosphere are carbon dioxide and water vapour. Water
makes the bigger contribution (about 60%) to the natural greenhouse effect. Between the absorptions caused by
carbon dioxide and water there is a window where the majority of the infrared radiation can escape with
relatively little absorption (except for a narrow band where ozone absorbs.) About 70% of Earths radiation
escapes into space through this window.
Gases produced by human activities can increase the natural greenhouse effect of the atmosphere. This is often
known as the enhanced greenhouse effect. There are two types of these gases:
Gases already present in the atmosphere but an increased amount is added by human activities. This includes
carbon dioxide and methane. Carbon dioxide contributes the most to the enhanced greenhouse effect.
Gases which are not naturally present. These can sometimes absorb in the window through which radiation
would normally escape into space. This can cause them to have a very large greenhouse effect. CFCs
(chlorofluorocarbons) are an example.
The concentration of carbon dioxide is currently about 380 ppm (parts per million) in the atmosphere and is
rising by about 0.45% per year. Modellers use a scenario of doubled CO 2 concentration to assess the sensitivity
of the Earths climate system to changes in greenhouse gas concentration. They predict rises of about 1.54.5C. This is not just due to the direct effect of carbon dioxide there are a large number of feedback
processes which amplify the effect of the carbon dioxide. Carbon dioxide is about 0.03% of the Earths
atmosphere; water is more variable, but at the surface is usually about 1-4% of the atmosphere.

NON-RENEWABLE ENERGY SOURCES

INTRODUCTION
Sufficient, reliable sources of energy are a necessity for industrialized nations. Energy is used for heating,
cooking, transportation and manufacturing. Energy can be generally classified as non-renewable and
renewable. Over 85% of the energy used in the world is from non renewable supplies. Most developed
nations are dependent on non-renewable energy sources such as fossil fuels (coal and oil) and nuclear
power. These sources are called non-renewable because they cannot be renewed or regenerated quickly
enough to keep pace with their use. Some sources of energy are renewable or potentially renewable.
Examples of renewable energy sources are: solar, geothermal, hydroelectric, biomass, and wind.
Renewable energy sources are more commonly by used in developing nations. Industrialized societies
depend on non-renewable energy sources. Fossil fuels are the most commonly used types of nonrenewable energy. They were formed when incompletely decomposed plant and animal matter was buried
in the earth's crust and converted into carbon-rich material that is useable as fuel. This process occurred
over millions of years. The three main types of fossil fuels are coal, oil, and natural gas. Two other lessused sources of fossil fuels are oil shales and tar sands.
COAL
Coal is the most abundant fossil fuel in the world with an estimated reserve of one trillion metric tons. Most
of the world's coal reserves exist in Eastern Europe and Asia, but the United States also has considerable
reserves. Coal formed slowly over millions of years from the buried remains of ancient swamp plants.
During the formation of coal, carbonaceous matter was first compressed into a spongy material called
"peat," which is about 90% water. As the peat became more deeply buried, the increased pressure and
temperature turned it into coal. Different types of coal resulted from differences in the pressure and
temperature that prevailed during formation. The softest coal (about 50% carbon), which also has the
lowest energy output, is called lignite. Lignite has the highest water content (about 50%) and relatively low
amounts of smog-causing sulfur. With increasing temperature and pressure, lignite is transformed into
bituminous coal (about 85% carbon and 3% water). Anthracite (almost 100% carbon) is the
hardest coal and also produces the greatest energy when burned. Less than 1% of the coal found in the
United States is anthracite. Most of the coal found in the United States is bituminous. Unfortunately,
bituminous coal has the highest sulfur content of all the coal types. When the coal is burned, the pollutant
sulfur dioxide is released into the atmosphere. Coal mining creates several environmental problems. Coal
is most cheaply mined from near-surface deposits using strip mining techniques. Strip-mining causes
considerable environmental damage in the forms of erosion and habitat destruction. Sub-surface mining of
coal is less damaging to the surface environment, but is much more hazardous for the miners due to tunnel
collapses and gas explosions. Currently, the world is consuming coal at a rate of about 5 billion metric tons
per year. The main use of coal is for power generation, because it is a relatively inexpensive way to
produce power. Coal is used to produce over 50% of the electricity in the United States. In addition to
electricity production, coal is sometimes used for heating and cooking in less developed countries and in
rural areas of developed countries. If consumption continues at the same rate, the current reserves will last

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for more than 200 years. The burning of coal results in significant atmospheric pollution. The sulfur
contained in coal forms sulfur dioxide when burned. Harmful nitrogen oxides, heavy metals, and carbon
dioxide are also released into the air during coal burning. The harmful emissions can be reduced by
installing scrubbers and electrostatic precipitators in the smokestacks of power plants. The toxic ash
remaining after coal burning is also an environmental concern and is usually disposed into landfills.

OIL;Crude oil or liquid petroleum, is a fossil fuel that is refined into many different energy products (e.g.,
gasoline, diesel fuel, jet fuel, heating oil). Oil forms underground in rock such as shale, which is rich in
organic materials. After the oil forms, it migrates upward into porous reservoir rock such as sandstone or
limestone, where it can become trapped by an overlying impermeable cap rock. Wells are drilled into these
oil reservoirs to remove the gas and oil. Over 70 percent of oil fields are found near tectonic plate
boundaries, because the conditions there are conducive to oil formation. Oil recovery can involve more
than one stage. The primary stage involves pumping oil from reservoirs under the normal reservoir
pressure. About 25 percent of the oil in a reservoir can be removed during this stage. The secondary
recovery stage involves injecting hot water into the reservoir around the well. This water forces the
remaining oil toward the area of the well from which it can be recovered. Sometimes a tertiary method of
recovery is used in order to remove as much oil as possible. This involves pumping steam, carbon dioxide
gas or nitrogen gas into the reservoir to force the remaining oil toward the well.
Tertiary recovery is very expensive and can cost up to half of the value of oil removed. Carbon dioxide used
in this method remains sequestered in the deep reservoir, thus mitigating its potential greenhouse effect on
the atmosphere. The refining process required to convert crude oil into useable hydrocarbon compounds
involves boiling the crude and separating the gases in a process known as fractional distillation. Besides its
use as a source of energy, oil also
provides base material for plastics, provides asphalt for roads and is a source of industrial chemicals. Over
50 percent of the world's oil is found in the Middle East; sizeable additional reserves occur in North
America. Most known oil reserves are already being exploited, and oil is being used at a rate that exceeds
the rate of discovery of new sources. If the consumption rate continues to increase and no significant new
sources are found, oil supplies may be exhausted in another 30 years or so. Despite its limited supply, oil is
a relatively inexpensive fuel source. It is a preferred fuel source over coal. An equivalent amount of oil
produces more kilowatts of energy than coal. It also burns cleaner, producing about 50 percent less sulfur
dioxide. Oil, however, does cause environmental problems. The burning of oil releases atmospheric
pollutants such as sulfur dioxide, nitrogen oxides, carbon dioxide and carbon monoxide. These gases are
smog-precursors that pollute the air and greenhouse gases that contribute to global warming. Another
environmental issue associated with the use of oil is the impact of oil drilling. Substantial oil reserves lie
under the ocean. Oil spill accidents involving drilling platforms kill marine organisms and birds. Some
reserves such as those in northern Alaska occur in wilderness areas. The building of roads, structures and
pipelines to support oil recovery operations can severely impact the wildlife in those natural areas.
NATURAL GAS:Natural gas production is often a by-product of oil recovery, as the two commonly share underground
reservoirs. Natural gas is a mixture of gases, the most common being methane (CH4). It also contains
some ethane (C2H5), propane (C3H8), and butane (C4H10). Natural gas is usually not contaminated with
sulfur and is therefore the cleanest burning fossil fuel. After recovery, propane and butane are removed
from the natural gas and made into liquefied petroleum gas (LPG). LPG is shipped in special pressurized
tanks as a fuel source for areas not directly served by natural gas pipelines (e.g., rural communities). The
remaining natural gas is further refined to remove impurities and water vapor, and then transported in
pressurized pipelines. The United States has over 300,000 miles of natural gas pipelines. Natural gas is
highly flammable and is odorless. The characteristic smell associated with natural gas is actually that of
minute quantities of a smelly sulfur compound (ethyl mercaptan) which is added during refining to warn
consumers of gas leaks. The use of natural gas is growing rapidly. Besides being a clean burning fuel
source, natural gas is easy and inexpensive to transport once pipelines are in place. In developed
countries, natural gas is used primarily for heating, cooking, and powering vehicles. It is also used in a
process for making ammonia fertilizer. The current estimate of natural gas reserves is about 100 million
metric tons. At current usage levels, this supply will last an estimated 100 years. Most of the world's natural
gas reserves are found in Eastern Europe and the Middle East.

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OIL SHALE AND TAR SANDS:Oil shale and tar sands are the least utilized fossil fuel sources. Oil shale is sedimentary rock with very fine
pores that contain kerogen, a carbon-based, waxy substance. If shale is heated to 490 C, the kerogen
vaporizes and can then be condensed as shale oil, a thick viscous liquid. This shale oil is generally further
refined into usable oil products. Production of shale oil requires large amounts of energy for mining and
processing the shale. Indeed about a half barrel of oil is required to extract every barrel of shale oil. Oil
shale is plentiful, with estimated reserves totaling 3 trillion barrels of recoverable shale oil. These reserves
alone could satisfy the world's oil needs for about 100 years. Environmental problems associated with oil
shale recovery include: large amounts of water needed for processing, disposal of toxic waste water, and
disruption of large areas of surface lands. Tar sand is a type of sedimentary rock that is impregnated with a
very thick
crude oil. This thick crude does not flow easily and thus normal oil recovery methods cannot be used to
mine it. If tar sands are near the surface, they can be mined directly. In order to extract the oil from deepseated tar sands, however, steam must be injected into the reservoir to make the oil flow better and push it
toward the recovery well. The energy cost for producing a barrel of tar sand is similar to that for oil shale.
The largest tar-sand deposit in the world is in Canada and contains enough material (about 500 billion
barrels) to supply the world with oil for about 15 years. However, because of environmental concerns and
high production costs these tar sand fields are not being fully utilized.
NUCLEAR POWER
In most electric power plants, water is heated and converted into steam, which drives a turbine-generator to
produce electricity. Fossil-fueled power plants produce heat by burning coal, oil, or natural gas. In a nuclear
power plant, the fission of uranium atoms in the reactor provides the heat to produce steam for generating
electricity. Several commercial reactor designs are currently in use in the United States. The most widely
used design consists of a heavy steel pressure vessel surrounding a reactor core. The reactor core
contains the uranium fuel, which is formed into cylindrical ceramic pellets and sealed in long metal tubes
called fuel rods. Thousands of fuel rods form the reactor core. Heat is produced in a nuclear reactor when
neutrons strike uranium atoms, causing them to split in a continuous chain reaction. Control rods, which are
made of a material such as boron that absorbs neutrons, are placed among the fuel assemblies. When the
neutron-absorbing control rods are pulled out of the core, more neutrons become available for fission and
the chain reaction speeds up, producing more heat. When they are inserted into the core, fewer neutrons
are available for fission, and the chain reaction slows or stops, reducing the heat generated. Heat is
removed from the reactor core area by water flowing through it in a closed pressurized loop. The heat is
transferred to a second water loop through a heat exchanger. The water also serves to slow down, or
"moderate" the neutrons which is necessary for sustaining the fission reactions. The second loop is kept at
a lower pressure, allowing the water to boil and create steam, which is used to power the turbine-generator
and produce electricity. Originally, nuclear energy was expected to be a clean and cheap source of energy.
Nuclear fission does not produce atmospheric pollution or greenhouse gases and it proponents expected
that nuclear energy would be cheaper and last
longer than fossil fuels. Unfortunately, because of construction cost overruns, poor management, and
numerous regulations, nuclear power ended up being much more expensive than predicted. The nuclear
accidents at Three Mile Island in Pennsylvania and the Chernobyl Nuclear Plant in the Ukraine raised
concerns about the safety of nuclear power. Furthermore, the problem of safely disposing spent nuclear
fuel remains unresolved. The United States has not built a new nuclear facility in over twenty years, but with
continued energy crises across the
country that situation may change.

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Energy Scene in India

The Integrated Energy Policy (IEP) Committee Report states that Indias strategies to meet energy requirement
are constrained by countrys energy resources and import possibilities. India is not well endowed with natural
energy resources. Reserves of oil, gas and Uranium are small though India has large reserves of thorium. While
coal is abundant, it is regionally concentrated and is of low calorific and high ash content, though it has the
advantage of low sulphur content. The extractable reserves, based on current extraction technology, remain
limited. Hydro potential is significant, but small compared to India needs and its contribution in terms of energy
is likely to remain small. Further, the need to mitigate environmental and social impact of storage schemes often
delays hydro development thereby causing huge cost overruns.

COAL PRODUCTION, DEMAND AND SUPPLY

Integrated Energy Policy has observed that the proved reserves of coal at the current level (2006) of consumption
can last for about 80 years. If all the inferred reserves also materialize then coal and lignite can last for over 140
years at the current rate of extraction. Of course, coal and lignite consumption will increase in the future and the
reserves would last for far fewer years. If domestic coal production continues to grow at 5% per year, the total
(including proven, indicated and inferred) extractable coal reserves will run out in around 45 years. However,
only about 45% of the potential coal bearing area has currently been covered by regional surveys. Indias coal
dependence is borne from the fact that 54% of the total installed electricity generation capacity is coal based and
67% of the capacity planned to be added during the 11 th Five Year Plan period (2007-12) is coal based. In order
to achieve economic growth of 8% to 9% in terms of GDP, countrys total coal demand has been projected to
increase from the present 730 mt in 2010-11 to 2,000 mt in 2031-32. Of this, about 75% of coal would go to
power plants. Given the projected increase in coal requirement, the domestic coal industry alone cannot fully
meet the demand. Present demand-supply gap is around 85 mt and it is expected to increase gradually to nearly
140 mt by 2017. On the domestic production front, Coal India Limited is the largest contributor accounting for
81% of countrys coal production. Of the balance 9.5% comes from Singarni Collieries Company Ltd and the
remaining comes from privately operated collieries and captive coal mines. Small mines in the North-Eastern
State of Meghalaya also add 6 mt to the total production. Presently the country imports about 85 mt of coal. Out
of this about 25 mt is metallurgical coking coal for the iron and steel industry. The balance is thermal coal used

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by power plants (50%), cement industry (17%), and other industries (33%). Presently the main sources of
thermal coal imports are Indonesia, Australia, New Zealand and South Africa. In addition, the emerging supply
sources include Canada, Mozambique and the USA. Present coal handling capacity at the ports is around 85 to 90
mt per annum, and has to be augmented to at least 120 mt per annum in next two years.
COAL RESOURCES
As on April 2010, Indias inventory of coal resource was 277 billion tonnes, comprising of proven 110 billion
tonnes; indicated - 131 billion tonnes and inferred - 36 billion tonnes.
Captive Mining Policy
With over 90% of coal production coming from government controlled mines, the present institutional structure
is a near government monopoly. Although the government has allocated over 200 coal blocks for development by
private/public entities outside the government owned coal companies, the progress has not been promising. In
order tobring about competition and transparency, the government is working hard and getting effective
regulatory framework in place.
Captive Mining Policy was introduced in 1993. For various reasons out of over 200 coal blocks containing coal
reserve of over 50 billion tonnes and with an aggregate ultimate annual production capacity for about 550 million
tonnes have not yielded expected coal production. Only 30 odd mines have commenced production that
contributed 36.30 mt in the financial year 2010-11 against the target of 104 mt. This shortfall in mining has led to
shortfall in the availability of coal in the country.
Institutional Set Up and Coal Sector Reforms
With a view to reform the coal sector, government has decided to allocate further coal blocks to a transparent
coking bidding system. Presently, government is engaged in consulting all the stakeholders for framing the rules
for introduction of auction based allocation of coal blocks. Issues pertaining to captive mining that require
immediate resolution and attention of the government and other stakeholders are also being addressed at the
highest level. The government is reportedly working towards opening up of the coal sector without any
restriction on marketing of coal.
Coal Quality Management
Indian coal by its very nature is high in ash content but low in sulphur content. The government has now decided
that all coal supplied to power plants (except for pit head stations) should be washed at the mine mouth. Coal
India has initiated a mega plan of setting up of some 20 odd coal washeries of an aggregate throughput capacity
of over 110 mt /year. These washeries could be set up on build, operate and maintain basis.
Coal Regulator
Demand supply gap of coal is a matter of serious concern and has a bearing on the long-term energy security. A
strong domestic coal production and delivery system is being emphasized to achieve energy self-sufficiency and
long-term energy security. An independent coal regulator is being considered to create confidence in the mind of
private investors and provide them a level playing field.

NUCLEAR ENERGY RESOURCES AND PRODUCTION

Uranium supply in India can fuel only 10,000 MW of the Pressurised Heavy Water Reactors (PHWR). Further,
India is extracting Uranium from extremely low grade ores (as low as 0.1% Uranium) compared to ores with up
to 12-14% Uranium in certain resources abroad. This makes Indian nuclear fuel 2-3 times costlier than
international supplies. The substantial Thorium reserves can be used but that requires that the fertile Thorium be
converted to fissile material. In this context, a three-stage nuclear power programme is envisaged. This
programme consists of setting up of Pressurised Heavy Water Reactors (PHWRs) in the first stage, Fast Breeder
Reactors (FBRs) in the second stage and reactors based on the Uranium 233-Thorium 232 cycle in the third
stage. FBR technology is critical to developing stage two of Indias nuclear power programme. Without
developing the wide-scale use of FBR technology, India will find it difficult to go beyond 10,000 MWe nuclear
capacity based on known indigenous Uranium resources. Use of FBR technology would enable indigenous
Uranium resources to support a 20,000 MWe nuclear power programme by the year 2020. Such a FBR
programme is critica to developing the Thorium-based third stage of Indias nuclearpower programme.

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Current Status of Nuclear Power in India

The
operating
nuclear
power

plants

Page 88

in

India

are

given

in

Table:-

Performance of Nuclear Power Plants

NPCIL achieved power generation of 26,473 million units - the highest ever, in the year 2010-11. This was an
increase of 41% over the power generation in the previous year. During the year 2010-11, thirteen of the twenty
operating units achieved availability factor of more than 85%. The operating reactors have registered over 340
reactors-years of safe operation so far.
INTRODUCTION TO ELECTRIC ENERGY GENERATION BY WIND, SOLAR AND TIDAL
TIDAL ENERGY:-

Tides are caused principally by the gravitational pull of the moon on the worlds oceans.
The sun also plays a minor role, not through its radiant energy but in the form of its
gravitational pull, which exerts small additional effect on tidal rhythms. And the rotation of
the earth is also a factor in the production of tides.

The resource of tides

Tidal cycles are calculated using harmonic constants defined by the rhythmic movements
of the sun, moon, and earth. The earth is spinning, precessing, and pulsating in concert
with its celestial neighbors in an ever-changing and infinite series of movements that
causes the oceans to rise and fall. This complex pattern has been closely observed for
eons and is now known and mathematically predictable, down to the finest detail across
the broadest reaches of time. It is possible, if it strikes ones fancy, to know the precise
tidal level at a specific location at a specific moment 100 years or 1000 years in the
future. Wind and weather cause changes under extreme conditions (tidal surges) and
these events are not specifically predictable, but the basic harmonic changes in water
levels caused by the tides are eminently predictable. On a global scope, the tides are
meters high bulge in the level of the ocean that moves across the globe every 24 hours
and 50 minutes. As this bulge nears land, it is changed in amplitude by the decreasing
depth and anomalies of the seabed. At the extremes, some tidal ranges are as small as 6
inches and some are as large as 60 feet. Broad-mouthed estuaries create the largest tidal
ranges and long straight coastlines tend to have the smallest. The power available (per
unit area) in any specific location is a function of the square of the tidal range and thus
the largest tidal ranges are the most attractive areas for tidal power generation. The
amount of water available in an offshore tidal power generator is a function of the area of

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seabed impounded. It is most economical to build an impoundment structure in a shallow

area, so it follows that the most attractive sites for offshore tidal power generation are
those where the tidal range is high and there are broad tidal flats at minimal depth.

How it works
The rise and fall of the sea level can power electric-generating equipment. The gearing of
the equipment is tremendous to turn the very slow motion of the tide into enough
displacement to produce energy. Tidal barrages, built across suitable estuaries, are
designed to extract energy from the rise and fall of the tides, using turbines located in
water passages in the barrages. The potential energy, due to the difference in water
levels across the barrages, is converted into kinetic energy in the form of fast moving
water passing through the turbines. This, in turn, is converted into rotational kinetic
energy by the blades of the turbine, the spinning turbine then driving a generator to
produce electricity. The diagram demonstrates power generation cycle of a tidal power.
The highest output is achieved from hydroelectric turbines by operating when the
available head is highest. The available head is highest at extreme low tide and extreme
high tide. These periods are roughly two hours in length, but there is relatively little
change in water level during the half hour preceding and the half hour after each of the
extreme lows and highs. By including these 30-minute shoulder periods, a 3-hour
generation period is achieved twice per tidal cycle. Thus, one can effectively generate at
optimum levels for roughly half of each tidal cycle.
WIND ENERGY:-

Wind is a kind of simple air motion .It is caused by the unequal heating of the earth
surface .Since the earth surface is made of different kinds of continents and oceans, it
absorbs the sun heat at different rates, and the different temperature could cause the
different pressure .During the day, the air above the land heats up more quickly as
we all know ,the warm air is light ,and it will expand and rise causing a low pressure
area ,where the heavier cooler air above the water will rush into and fill with, thus
creates a surface wind. However, at night, it is reversed because the air cools more
fastly over land than over water.

World wind distribution :Wind is an intermittent resource, and it is difficult for us to locate the space that the wind circulates, because
the wind pattern is affected by many factors, including the geographic factors, such as the seasons change,
day and night change, humidity, the irregular reflectivity of land and water and so on. As result, these effects
could complicate the flow of wind over the surface.

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Although there are many factors involving the wind pattern, we can identify the three major wind belts in the
world. It is classified according to the direction its blowing.
1. The first one is called the doldrums, which is the region that near the equator. It is the intertropical
convergence space where the hemispheres trade winds meet, and it has calm wind in extremely low pressure.
2. The second one is a high-pressure area which lies about 30o latitude. In the region, the two kinds of winds
which are trades and westerlies separate from each other, and they respectively flow toward the equator and pole
direction. The belt is different from the doldrums, it has little wind.
3. The third one is called the polar front, which lies about 60o latitude. However, for the reason that the polar
front flow towards south in winter and north in summer, so the belt varies with the change of seasons.
There exists a great difference pressure, for the contacting of polar easterlies and
prevailing westerlies , the former is cold, while the latter is hot, so it is easily to form the
wind.

INTRODUCTION TO ELECTRIC ENERGY GENERATION BY SOLAR ENERGY

In today's climate of growing energy needs and increasing environmental concern, alternatives to
the use of non-renewable and polluting fossil fuels have to be investigated. One such alternative is solar
energy. Solar energy is quite simply the energy produced directly by the sun and collected elsewhere,
normally the Earth. The sun creates its energy through a thermonuclear process that converts about
650,000,0001 tons of hydrogen to helium every second. The process creates heat and electromagnetic
radiation. The heat remains in the sun and is instrumental in maintaining the thermonuclear reaction. The
electromagnetic radiation (including visible light, infra-red light, and ultra-violet radiation) streams out into
space in all directions. Only a very small fraction of the total radiation produced reaches the Earth. The
radiation that does reach the Earth is the indirect source of nearly every type of energy used today. The
exceptions are geothermal energy, and nuclear fission and fusion. Even fossil fuels owe their origins to the
sun; they were once living plants and animals whose life was dependent upon the sun. Much of the world's

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required energy can be supplied directly by solar power. More still can be provided indirectly. The
practicality of doing so will be examined, as well as the benefits and drawbacks. In addition, the uses solar
energy is currently applied to will be noted. Due to the nature of solar energy, two components are required
to have a functional solar energy generator. These two components are a collector and a storage unit. The
collector simply collects the radiation that falls on it and converts a fraction of it to other forms of energy
(either electricity and heat or heat alone). The storage unit is required because of the non-constant nature of
solar energy; at certain times only a very small amount of radiation will be received. At night or during
heavy cloudcover, for example, the amount of energy produced by the collector will be quite small. The
storage unit can hold the excess energy produced during the periods of maximum productivity,
and release it when the productivity drops. In practice, a backup power supply is usually added, too, for the
situations when the amount of energy required is greater than both what is being produced and what is stored
in the container. Methods of collecting and storing solar energy vary depending on the uses planned for the
solar generator. In general, there are three types of collectors and many forms of storage units. The three
types of collectors are flat-plate collectors, focusing collectors, and passive collectors. Flat-plate collectors
are the more commonly used type of collector today. They are arrays of solar panels arranged in a simple
plane. They can be of nearly any size, and have an output that is directly related to a few variables including
size, facing, and cleanliness. These variables all affect the amount of radiation that falls on the collector.
Often these collector panels have automated machinery that keeps them facing the sun. The additional
energy they take in due to the correction of facing more than compensates for the energy needed to drive the
extra machinery.

TYPES OF SOLAR ENERGY SYSTEMS:PHOTOVOLTAIC:-

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Photovoltaic (PV) cells are designed to generate electrical power directly from sunlight. PV systems have no
moving parts, require very little maintenance, do not produce pollution or consume water during operation.
Modern PV systems can covert up to 20 percent of the suns energy to electrical power. Most PV systems are
made of a series of photo-cells constructed of thin layers of silicon. Sunlight is composed of light energy in
the form of photons. When these photons strike the silicon layers of a photo-cell it bumps free electrons
generating an electrical current. Photovoltaic systems can be easily expanded to generate the amount of
electricity required for a given application and can be specifically tailored by adding or removing photocells. Small PV systems can be used to power stop lights, streetlights (see side picture) or small water pumps
in remote locations. Solar arrays can be used to provide larger electrical needs such as for a school building
or residential home. These systems can use batteries to store the electricity generated during the day
providing power for nighttime electrical needs or when cloud cover reduces total sunlight. Quite often these
systems use a net metering approach which allows the electric meter to turn backwards when excess
power is being generated. Small photovoltaic systems are already in widespread use in calculators and other
small electronic devices.

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SOLAR-THERMAL:These systems are designed to concentrate the suns energy and convert it to thermal energy (heat).
Examples can be as simple as a roof mounted hot water tank painted black to absorb sunlight or as
sophisticated as an entire system of parabolic mirrors generating heat to produce steam from water. The most
common use of solar-thermal technology is in domestic water
heating. Hot water heating is often the second leading home energy expense. In general these systems use a
network of liquid filled tubes painted black to absorb sunlight and contain either water or an appropriate
thermally conductive liquid (typically ethylene glycol) to carry the captured heat to its application. This
approach can also be modified to meet residential space
heating needs by storing the hot water generated during the day in tanks or a plumbing network located
inside the home. This type of system is designed to release heat during the night. Heating of swimming
pools is an excellent application for solar-thermal technology. These relatively simple systems are designed
to heat the pool water during the day and use the thermal mass of
the swimming pool to retain the heat during the night. Advanced solar-thermal systems can be designed that
utilize large grids of mirrors or lenses to concentrate the suns energy. The captured solar energy is then used
either to directly heat water to steam or to heat a carrier fluid
(typically an oil) that is then circulated through a boiler to generate steam. The resulting steam can then be
used to drive turbine systems to generate electricity or to provide mechanical power using a steam engine
system. These systems have been successfully installed in California and currently generate electricity at a
cost only slightly higher than conventional fossil fuels.

REVIEW QUESTION
Q-1. Discuss briefly renewable and non-renewable energy sources and compare them.
Q-2. Explain impact of power plant on environment and what steps should be taken by the
control bodes to make neat and clean environment.
Q-3. Explain the principal of geothermal power plant.

Q-4. Write the short notes on the following:

(i)
Electrical energy generation by solar energy.

(ii) Green House effect

Q-8. Write the impact of thermal power plant on environment.

Page 94

U N I T - I I I LOADS AND LOAD CURVES & LOADS AND LOAD

CURVES
The load on a power station varies from time to time due to uncertain demands of the consumers and is
known as variable load on the station.
A power station is designed to meet the load requirements of the consumers. An ideal load on the station,
from stand point of equipment needed and operating routine, would be one of constant magnitude and
steady duration. However, such a steady load on the station is never realised in actual practice. The
consumers require their small or large block of power in accordance with the demands of their activities.
Thus the load demand of one consumer at any time may be different from that of the other consumer. The
result is that load on the power station varies from time to time.

Effects of variable load. The variable load on a power station introduces many perplexities in its
operation. Some of the important effects of variable load on a power station are:

(i) Need of additional equipment. The variable load on a power station necessitates to have
additional equipment. By way of illustration, consider a steam power station. Air, coal and water
are the raw materials for this plant. In order to produce variable power, the supply of these
materials will be required to be varied correspondingly. For instance, if the power demand on the
plant increases, it must be followed by the increased flow of coal, air and water to the boiler in
order to meet the increased demand. Therefore, additional equipment has to be installed to
accomplish this job. As a matter of fact, in a modern power plant, there is much equipment
devoted entirely to adjust the rates of supply of raw materials in accordance with the power
demand made on the plant.
(ii)

Increase in production cost. The variable load on the plant increases the cost of the production
of electrical energy. An alternator operates at maximum efficiency near its rated capacity. If a
single alternator is used, it will have poor efficiency during periods of light loads on the plant.
Therefore, in actual practice, a number of alternators of different capacities are installed so that
most of the alternators can be operated at nearly full load capacity. However, the use of a number
of generating units increases the initial cost per kW of the plant capacity as well as floor area
required. This leads to the increase in production cost of energy.

Load Curves:

The curve showing the variation of load on the power station with respect to (w.r.t) time is known as a load
curve.
The load on a power station is never constant; it varies from time to time. These load variations during
the whole day (i.e., 24 hours) are recorded half-hourly or hourly and are plotted against time on the graph.
The curve thus obtained is known as daily load curve as it shows the variations of load w.r.t. time during the

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day. Fig. 3.2. shows a typical daily load curve of a power station. It is clear that load on the power station is
varying, being maximum at 6 P.M. in this case. It may be seen that load curve indicates at a glance the
general character of the load that is being imposed on the plant. Such a clear representation cannot be
obtained from tabulated figures.
The monthly load curve can be obtained from the daily load curves of that month. For this purpose,
average* values of power over a month at different times of the day are calculated and then plotted on the
graph. The monthly load curve is generally used to fix the rates of energy. The yearly load curve is obtained
by considering the monthly load curves of that particular year. The yearly load curve is generally used to
determine the annual load factor.

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Importance. The daily load curves have attained a great importance in generation as they
supply the following information readily :
(i)
(ii)
(iii)
(iv)

The daily load curve shows the variations of load on the power station during
different hours of the day.
The area under the daily load curve gives the number of units generated in
the day. Units generated/day = Area (in kWh) under daily load curve.
The highest point on the daily load curve represents the maximum demand on the
station on that day.
The area under the daily load curve divided by the total number of hours gives the
average load on the station in the day.

The ratio of the area under the load curve to the total area of rectangle in which it
is contained gives the load factor.
For instance, if we consider the load on power station at mid-night during the various days of the
month, it may vary slightly. Then the average will give the load at mid-night on the monthly
curve.
(v)

(vi)

The load curve helps in selecting* the size and number of generating units.

(vii)

The load curve helps in preparing the operation schedule** of the station.

Important Terms and Factors

The variable load problem has introduced the following terms and factors in power plant
engineering:
(i) Connected load. It is the sum of continuous ratings of all the equipments connected to
supply system.
A power station supplies load to thousands of consumers. Each consumer has certain
equipment installed in his premises. The sum of the continuous ratings of all the equipments in
the consumer's premises is the "connected load" of the consumer. For instance, if a consumer has
connections of five 100-watt lamps and a power point of 500 watts, then connected load of the
consumer is 5 x 100 + 500 = 1000 watts. The sum of the connected loads of all the consumers is
the connected load to the power station.

Maximum demand : It is the greatest demand of load on the power station

during a given period.
The load on the power station varies from time to time. The maximum of all the demands
that have occurred during a given period (say a day) is the maximum demand. Thus referring
back to the load curve of Fig. 3.2, the maximum demand on the power station during the day
is 6 MW and it occurs at 6 P.M. Maximum demand is generally less than the connected load
because all the consumers do not switch on their connected load to the system at a time. The
knowledge of maximum demand is very important as it helps in determining the installed
capacity of the station. The station must be capable of meeting the maximum demand.
(ii)

(iii)

Demand factor. It is the ratio of maximum demand

on the power station to its connected load i.e.,

Connected load The value of demand factor is usually less than 1. It is expected because
maximum demand on the power station is generally less than the connected load. If the
maximum demand on the power station is 80 MW and the connected load is 100 MW, then
demand factor = 80/100 = 0-8. The knowledge of demand factor is vital in determining the
capacity of the plant equipment.

(iv) Average load. The average of loads occurring on the power station in a given period (day or
month or year) is known as average load or average demand.
It will be shown in Art. 3.9 that number and size of the generating units are selected to fit the
load curve. This helps in operating the generating units at or near the point of maximum
efficiency.
It is the sequence and time for which the various generating units (i.e., alternators) in the plant
will be put in operation.

(v)

Load factor. The ratio of average load to the maximum demand during a
given period is known as load factor i.e.,

If the plant is in operation for T hours,

The load factor may be daily load factor, monthly load factor or annual load factor if the time
period considered is a day or month or year. Load factor is always less than 1 because average
load is smaller than the maximum demand. The load factor plays key role in determining the
overall cost per unit generated. Higher the load factor of the power station, lesser 1 will be the
cost per unit generated.
(vi)

Diversity factor. The ratio of the sum of individual maximum demands to

the maximum demand on power station is known as diversity factor i.e.,

A power station supplies load to various types of consumers whose maximum demands
generally do not occur at the same time. Therefore, the maximum demand on the power station is
always less than the sum of individual maximum demands of the consumers. Obviously,
1

diversity! factor will always be greater than 1. The greater the diversity factor, the lesser} is the
cost of generation of power.
(vii) Plant

capacity factor. It is the ratio of actual energy produced to the

maximum possible energy that could have been produced during a given
period i.e.,

Thus if the considered period is one year,

Thus if the considered period is one year,

The plant capacity factor is an indication of the reserve capacity of the plant. A power
station is so designed that it has some reserve capacity for meeting the increased load demand in
future. Therefore, the installed capacity of the plant is always somewhat greater than the
maximum demand on the plant.
Reserve capacity = Plant capacity - Max. demand
It is interesting to note that difference between load factor and plant capacity factor is an indication of reserve capacity. If the maximum demand on the plant is equal to the plant capacity, then
load factor and plant capacity factor will have the same value. In such a case, the plant will have
no reserve capacity.
(viii)
Plant use factor. It is ratio of kWh generated to the product of plant
capacity and the number of hours for which the plant was in operation i.e.

Suppose a plant having installed capacity of 20 MW produces annual output of 7-35 x 102
kWh and remains in operation for 2190 hours in a year. Then,

3.5 Units Generated per Annum

It is often required to find the kWh generated per annum from maximum demand and load
factor. The procedure is as follows :

3.6 Load Duration Curve

When the load elements of a load curve are arranged in the order of descending magnitudes, the
curve thus obtained is called a load duration curve.

The load duration curve is obtained from the same data as the load curve but the ordinates are
arranged in the order of descending magnitudes. In other words, the maximum load is
represented to the left and decreasing loads are represented to the right in the descending order.
Hence the area under the load duration curve and the area under the load curve are equal. Fig.
3.3 (i) shows the daily load curve. The daily load duration curve can be readily obtained from it.
It is clear from daily load curve [See Fig. 3.3. (i)], that load elements in order of descending
magnitude are : 20 MW for 8 hours; 15 MW for 4 hours and 5 MW for 12 hours. Plotting these
loads in order of descending magnitude, we get the daily load duration curve as shown in Fig.
3.3 (ii).
The following points may be noted about load duration curve :
The load duration curve gives the data in a more presentable form. In other words, it
readily shows the number of hours during which the given load has prevailed.
(ii) The area under the load duration curve is equal to that of the corresponding load
curve. Obviously, area under daily load duration curve (in kWh) will give the units
generated on that day.
(iii) The load duration curve can be extended to include any period of time. By laying
out the abscissa from 0 hour to 8760 hours, the variation and distribution of demand
for an entire year can be summarised in one curve. The curve thus obtained is called
the annual load duration curve.
(i)

Types of Loads
A device which taps electrical energy from the electric power system is called a load on the
system. The load may be resistive (e.g., electric lamp), inductive (e.g., induction motor),
capacitive or some combination of them. The various types of loads on the power system are :
(iv)

(v)

(vi)

Domestic load. Domestic load consists of lights, fans, refrigerators, heaters,

television, small motors for pumping water etc. Most of the residential load occurs
only for some hours during the day (i.e., 24 hours) e.g., lighting load occurs during
night time and domestic appliance load occurs for only a few hours. For this reason,
the load factor is low (10% to 12%).
Commercial load. Commercial load consists of lighting for shops, fans and electric
appliances used in restaurants etc. This class of load occurs for more hours during the
day as compared to the domestic load. The commercial load has seasonal variations
due to the extensive use of air- conditioners and space heaters.
Industrial load. Industrial load consists of load demand by industries. The
magnitude of industrial load depends upon the type of industry. Thus small scale
industry requires load upto 25 kW, medium scale industry between 25kW and 100

kW and large-scale industry requires load above 500 kW. Industrial loads are
generally not weather dependent.
(vii) Municipal load. Municipal load consists of street lighting, power required for water
supply and drainage purposes. Street lighting load is practically constant throughout
the hours of the night. For water supply, water is pumped to overhead tanks by pumps
driven by electric motors. Pumping is carried out during the off-peak period, usually
occurring during the night. This helps to improve the load factor of the power system.
(viii)
Irrigation load. This type of load is the electric power needed for pumps driven
by motors to supply water to fields. Generally this type of load is supplied for 12
hours during night.
(ix) Traction load. This type of load includes tram cars, trolley buses, railways etc. This
class of load has wide variation. During the morning hour, it reaches peak value
because people have to go to their work place. After morning hours, the load starts
decreasing and again rises during evening since the people start coming to their
homes.
3.7 Typical Demand and Diversity Factors

The demand factor and diversity factor depend on the type of load and its magnitude.

Illustration. Load and demand factors are always less than 1 while diversity factors are
more than unity. High load and diversity factors are the desirable qualities of the power system.
Indeed, these factors are used to predict the load. Fig. 3.4 shows a small part of electric power
system where a distribution transformer is supplying power to the consumers. For simplicity,
only three consumers a, b, and c are shown in the figure. The maximum demand of consumer a
is the product of its connected load and the appropriate demand factor. Same is the case for
consumers b and c. The maximum demand on the transformer is the sum of a, b and c's
maximum demands divided by the diversity factors between the consumers. Similarly, the maximum demand on the feeder is the sum of maximum demands on the distribution transformers
connected to it divided by the diversity factor between transformers. Likewise diversification
between feeders is recognised when obtaining substation maximum demands and substation
diversification when predicting maximum load on the power station. Note that diver- a,b, c sity
factor is the sum of the individual maximum demands of the subdivisions of a system taken as
they may occur during the daily cycle divided by the maximum simultaneous demand of the
system. The "system" may be a group of consumers served by a certain transformer, a group of
transformers served by a feeder etc. Since individual variations have diminishing effect as one
goes farther from the ultimate consumer in making measurements, one should expect decreasing
numerical values of diversity factor as the power plant end of the system is approached. This is
clear from the above table showing diversity factors between different elements of the power
system.

Example 3.1. The maximum demand on a power station is 100 MW. If the annual load factor is
40% , calculate the total energy generated in a year.
Solution.
Energy generated/year = Max. demand x L.F. x Hours in a year
= (100 x 103) x (0-4) x (24 x 365) kWh
= 3504 x 105 kWh

Example 3.2. A generating station has a connected load of 43MW and a maximum demand of 20
MW; the units generated being 615 x 106 per annum. Calculate (i) the demand factor and (ii)
load factor.
Solution.

Example 3.3. A 100 MWpower station delivers 100 MW for 2 hours, 50MW for 6 hours and
is shut down for the rest of each day. It is also shut down for maintenance for 45 days each year.
Calculate its annual load factor.
Solution

Example 3.4. A generating station has a maximum demand of 25MW, a load factor of 60%,
a plant capacity factor of 50% and a plant use factor of 72%. Find (i) the reserve capacity of the
plant (ii) the daily energy produced and (iii) maximum energy that could be produced daily if the
plant while running as per schedule, were fully loaded.
Soltuion

Load Curves and Selection of Generating Units

The load on a power station is seldom constant; it varies from time to time. Obviously, a single
generating unit (i.e., alternator) will not be an economical proposition to meet this varying load.
It is because a single unit will have very poor* efficiency during the periods of light loads on the
power station. Therefore, in actual practice, a number of generating units of different sizes are
installed in a power station. The selection of the number and sizes of the units is decided from

the annual load curve of the station. The number and size of the units are selected in such a way
that they correctly fit the station load curve. Once this underlying principle is adhered to, it
becomes possible to operate the generating units at or near the point of maximum efficiency.
Illustration. The principle of selection of number and sizes of generating units with the help
of load curve is illustrated in Fig. 3.11. In Fig. 3.11 (i), the annual load curve of the station is
shown. It is clear form the curve that load on the station has wide variations ; the minimum load
being somewhat near 50 kW and maximum load reaching the value of 500 kW. It hardly needs
any mention that use of a single unit to meet this varying load will be highly uneconomical.

As discussed earlier, the total plant capacity is divided into several generating units of
different sizes to fit the load curve. This is illustrated in Fig. 3.11 (ii) where the plant capacity is
divided into three* units numbered as 1, 2 and 3. The cyan colour outline shows the units
capacity being used. The three units employed have different capacities and are used according
to the demand on the station. In this case, the operating schedule can be as under :
Time

Units in operation

From 12 midnight to 7 A.M.

Only unit no.1 is put in operation.

From 7 A.M. to 12.00 noon

Unit no. 2 is also started so that both units 1 and 2 are

in operation.

From 12.00 noon to 2 P.M.

Unit no. 2 is stopped and only unit 1operates.

From 2 P.M. to 5 P.M.

Unit no. 2 is again started. Now units 1 and 2 are in

operation.

From 5 P.M. to 10.30 P.M.

Units 1, 2 and 3 are put in operation.

From 10. 30 P.M. to 12.00 midnight Units 1 and 2 are put in operation.
Thus by selecting the proper number and sizes of units, the generating units can be made to
operate near maximum efficiency. This results in the overall reduction in the cost of production
of electrical energy.
3.10 Important Points in the Selection of Units
While making the selection of number and sizes of the generating units, the following points
should be kept in view :

(i). The number and sizes of the units should be so selected that they approximately fit the
annual load curve of the station.
(ii). The units should be preferably of different capacities to meet the load requirements. Although use
of identical units (i.e., having same capacity) ensures saving* in cost, they often do not meet the
load requirement.
(iii).
The capacity of the plant should be made 15% to 20% more than the maximum demand to meet
the future load requirements.
(iv). There should be a spare generating unit so that repairs and overhauling of the working units can
be carried out.
(v). The tendency to select a large number of units of smaller capacity in order to fit the load curve very
accurately should be avoided. It is because the investment cost per kW of capacity increases as the
size of the units decreases.

Base Load and Peak Load on Power Station

The changing load on the power station makes its load curve of variable nature. Fig. 3.13. shows
the typical load curve of a power station. It is clear that load on the power station varies from
time to time. However, a close look at the load curve reveals that load on the power station can
be considered in two parts, namely;
(i)

Base load

Peak load
(i) Base load. The unvarying load which occurs almost the whole day on the station
is known as base load.
Referring to the load curve of Fig. 3.13, it is clear that 20 MW of load has to be supplied by the
station at all times of day and night i.e. throughout 24 hours. Therefore, 20 MW is the base load
of the station. As base load on the station is almost of constant nature, therefore, it can be
suitably supplied (as discussed in the next Article) without facing the problems of variable load.
(ii)

Peak load. The various peak demands of load over and above the base load of the
station is known as peak load.
Referring to the load curve of Fig. 3.13, it is clear that there are peak demands of load excluding
base load. These peak demands of the station generally form a small part of the total load and
may occur throughout the day.
(ii)

Method of Meeting the Load

The total load on a power station consists of two parts viz., base load and peak load. In order to
achieve overall economy, the best method to meet load is to interconnect two different power
stations. The more efficient plant is used to supply the base load and is known as base load
power station. The less efficient plant is used to supply the peak loads and is known as peak load
power station. There is no hard and fast rule for selection of base load and peak load stations as
it would depend upon the particular situation. For example, both hydro-electric and steam power
stations are quite efficient and can be used as base load as well as peak load station to meet a
particular load requirement.
Illustration. The interconnection of steam and hydro plants is a beautiful illustration to meet
the load. When water is available in sufficient quantity as in summer and rainy season, the
hydroelectric plant is used to carry the base load and the steam plant supplies the peak load as
shown in Fig 3.14 (i).

However, when the water is not available in sufficient quantity as in winter, the steam plant
carries the base load, whereas the hydro-electric plant carries the peak load as shown in Fig. 3.14
(ii).
3.13 Interconnected Grid System
The connection of several generating stations in parallel is known as interconnected grid system.
The various problems facing the power engineers are considerably reduced by
interconnecting different power stations in parallel. Although interconnection of station involves
extra cost, yet considering the benefits derived from such an arrrangement, it is gaining much
favour these days. Some of the advantages of interconnected system are listed below :
Exchange of peak loads : An important advantage of interconnected system is that the
peak load of the power station can be exchanged. If the load curve of a power station
shows a peak demand that is greater than the rated capacity of the plant, then the
excess load can be shared by other stations interconnected with it.
(ii) Use of older plants : The interconnected system makes it possible to use the older
and less efficient plants to carry peak loads of short durations. Although such plants
may be inadequate when used alone, yet they have sufficient capacity to carry short
peaks of loads when interconnected with other modern plants. Therefore,
interconnected system gives a direct key to the use of obsolete plants.
(i)

(iii)

Ensures economical operation : The interconnected system makes the operation of

concerned power stations quite economical. It is because sharing of load among the
stations is arranged in such a way that more efficient stations work continuously

throughouts the year at a high load factor and the less efficient plants work for peak
load hours only.
(iv) Increases diversity factor: The load curves of different interconnected stations are
generally different. The result is that the maximum demand on the system is much
reduced as compared to the sum of individual maximum demands on different
stations. In other words, the diversity factor of the system is improved, thereby
increasing the effective capacity of the system.
(v) Reduces plant reserve capacity : Every power station is required to have a standby
unit for emergencies. However, when several power stations are connected in
parallel, the reserve capacity of the system is much reduced. This increases the
efficiency of the system.
(vi) Increases reliability of supply : The interconnected system increases the reliability of supply.
If a major breakdown occurs in one station, continuity of supply can be maintained by other
healthy stations.

REVIEW QUESTION
Q-1 What do you understand by the load curve? What information is conveyed by a load curve?
Q-2 Explain the terms load factor and diversity factor. How do these factors influence the cost of
generation?

Q-3 What do you understand by base load and peak load?

Q-4 A power station has a maximum demand of 15000kw. The annual load
factor is 50% and plant capacity is 40%. Determine the reserve capacity of
the plant

Q-5. A 100 MW power station delivers 100MW for 2 hours,50MW for 6 hours
and is shut down for the rest of each day. It is also shut down for
maintenance for 45 days each year. Calculate its annual load factor.

UNIT-IV POWER PLANT ECONOMICS & ENERGY COST REDUCTION

4.1Economics of Power Generation

The art of determining the per unit (i.e., one kWh) cost of production of electrical energy is
known as economics of power generation.
A consumer will use electric power only if it is supplied at reasonable rate. Therefore, power
engineers have to find convenient methods to produce electric power as cheap as possible so that
consumers are tempted to use electrical methods. Before passing on to the subject further, it is
desirable that the readers get themselves acquainted with the following terms much used in the
economics of power generation.

4.5 Calculation of Most Economical Power Factor

4.6

Meeting the Increased KW Demand on power stations

UNIT-IV Power Plant Economics & Energy cost reduction

Introduction
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 the
electric supply company to sell electrical energy at a profit and ensure reliable service. 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.
Therefore, a careful study has to be made to calculate the cost of production. In this chapter, we
shall focus our attention on the various aspects of economics of power generation.
4.1 Economics of Power Generation
The art of determining the per unit (i.e., one kWh) cost ofproduction of electrical energy is
known as economics of power generation.
The economics of power generation has assumed a great importance in this fast developing
Principles of Power System
power plant engineering. A consumer will use electric power only if it is supplied at reasonable
rate. Therefore, power engineers have to find convenient methods to produce electric power as
cheap as possible so that consumers are tempted to use electrical methods. Before passing on to
the subject further, it is desirable that the readers get themselves acquainted with the following
terms much used in the economics of power generation:
Interest. The cost of use of money is known as interest.
A power station is constructed by investing a huge capital. This money is generally borrowed
from banks or other financial institutions and the supply company has to pay the annual interest
on this amount. Even if company has spent out of its reserve funds, the interest must be still
allowed for, since this amount could have earned interest if deposited in a bank. Therefore, while
(i)

calculating the cost of production of electrical energy, the interest payable on the capital
investment must be included. The rate of interest depends upon market position and other
factors, and may vary from 4% to 8% per annum.
(ii) Depreciation.

The decrease in the value of the power plant equipment and building
due to constant use is known as depreciation.
If the power station equipment were to last for ever, then interest on the capital investment
would have been the only charge to be made. However, in actual practice, every power station
has a useful life ranging from fifty to sixty years. From the time the power station is installed, its
equipment steadily deteriorates due to wear and tear so that there is a gradual reduction in the
value of the plant. This reduction in the value of plant every year is known as annual
depreciation. Due to depreciation, the plant has to be replaced by the new one after its useful
life. Therefore, suitable amount must be set aside every year so that by the time the plant retires,
the collected amount by way of depreciation equals the cost of replacement. It becomes obvious
that while determining the cost of production, annual depreciation charges must be included.
There are several methods of finding the annual depreciation charges and are discussed in Art.
4.4.
4.2 Cost of Electrical Energy
The total cost of electrical energy generated can be divided into three parts, namely ;
(i) Fixed cost ;

(ii) Semi-fixed cost ;

(iii) Running or operating cost.

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 organisation, interest on capital cost of land
(i)

and salaries of high officials. The annual expenditure on the central organisation and salaries of
high officials is fixed since it has to be met whether the plant has high or low maximum demand
or it generates less or more units. Further, the capital investment on the land is fixed and hence
the amount of interest is also fixed.
(ii) Semi-fixed

cost. It is the cost which depends upon maximum demand but is

independent of units generated.
The semi-fixed cost is directly proportional to the maximum demand on power station and is
on account of annual interest and depreciation on capital investment of building and equipment,
taxes, salaries of management and clerical staff. The maximum demand on the power station
determines its size and cost of installation. The greater the maximum demand on a power station,
the greater is its size and cost of installation. Further, the taxes and clerical staff depend upon the
size of the plant and hence upon maximum demand.
Running cost. It is the cost which depends only upon the number of units generated.
The running cost is on account of annual cost of fuel, lubricating oil, maintenance, repairs
(iii)

and

salaries of operating staff. 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.

Expressions for Cost of Electrical Energy

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.
4.3

(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.

Total annual cost of energy = Fixed cost + Semi-fixed cost + Running cost
= Constant + Proportional to max. demand + Proportional to kWh
generated.
= Rs (a + b kW + c kWh)
where a = annual fixed cost independent of maximum demand and en
ergy output. It is on account of the costs mentioned in Art. 4.2. b = constant which when
multiplied by maximum kW demand on the station gives the annual semi-fixed cost. c = a
constant which when multiplied by kWh output per annum gives the annual running cost.
(ii) Two

part form. It is sometimes convenient to give the annual cost of energy in two
part form. In this case, the annual cost of energy is divided into two parts viz., a fixed
sum per kW of maximum demand plus a running charge per unit of energy. The
expression for the annual cost of energy then becomes :
Total annual cost of energy = Rs. (A kW + B kWh)
where
A = a constant which when multiplied by maximum kW demand on the station gives the annual
cost of the first part.
B = a constant which when multiplied by the annual kWh generated gives the annual running
cost.

It is interesting to see here that two-part form is a simplification of three-part form. A little
reflection shows that constant "a" of the three part form has been merged in fixed sum per kW
maximum demand (i.e. constant A) in the two-part form.
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 replacement of the plant.
4.4

The following are the commonly used methods for determining the annual depreciation
charge :
Straight line method ;
(ii) Diminishing value method ;
(iii) Sinking fund method.
(i) Straight line method. In this method, a constant depreciation charge is made every
year on the basis of total depreciation and the useful life of the property. Obviously,
annual depreciation charge will be equal to the total depreciation divided by the
useful life of the property. Thus, if the initial cost of equipment is Rs 1,00,000 and its
scrap value is Rs 10,000 after a useful life of 20 years, then,
(i)

In general, the annual depreciation charge on the straight line method may be expressed as :

where
P = Initial cost of equipment
n = Useful life of equipment in years S = Scrap or salvage value after the useful life of the plant.
The straight line method is extremely simple and is easy to apply as the annual depreciation
charge can be readily calculated from the total depreciation and useful life of the equipment. Fig.
4.1 shows the graphical representation of the method. It is clear that initial value P of the
I
equipment reduces uniformly, through depreciation, to the scrap value S in the useful
life of the equipment. The depreciation curve (PA) follows a straight line path, indicating
constant annual depreciation charge. However, this method suffers from two defects. Firstly, the
assumption of constant depreciation charge every year is not correct. Secondly, it does not
account for the interest which may be drawn during accumulation.

(ii) Diminishing value method. In this method, depreciation charge is made every
year at a fixed rate on the diminished value of the equipment. In other
words,depreciation charge is first applied to the initial cost of equipment and then to
its diminished value. As an example, suppose the initial cost of equipment is Rs
10,000 and its scrap value after the useful life is zero. If the annual rate of
depreciation is 10%, then depreciation charge for the first year will be 0-1 x 10,000 =
Rs 1,000. The value of the equipment is diminished by Rs 1,000 and becomes Rs
9,000. For the second year, the depreciation charge will be made on the diminished
value (i.e. Rs 9,000) and becomes 0-1 x 9,000 = Rs 900. The value of the equipment
now becomes 9000 - 900 = Rs 8100. For the third year, the depreciation charge will
be 0-1 x 8100 = Rs 810 and so on.
Mathematical treatment
LetP = Capital cost of equipment
n = Useful life of equipment in years
S = Scrap value after useful life Suppose the annual unit* depreciation is x. It is desired to find
the value of x in terms of P, n and
S.
Value of equipment after one year
= P - Px = P (1 - x)
Value of equipment after 2 years
= Diminished value - Annual depreciation
= [P - Px] - [(P - Px)x] = P - Px - Px + Px3
= P(x2 - 2x + 1)
= P(1 - x )2 . '. Value of equipment after n years
= P(1 - x )n

But the value of equipment after n years (i.e., useful life) is equal to the scrap value S.
S = P(1 - x)n
3

(1 - x )n = S/P
1 - x = (S/P)1/n
x = 1 - (S/P)1/n

Or

...(i)

From exp. (i), the annual depreciation can be easily found. Thus depreciation to be made for
the first year is given by :
Depreciation for the first year = xP
= P[1 - (S/P)1/n]
Similarly, annual depreciation charge for the subsequent years can be calculated.

This method is more rational than the straight line method. Fig. 4.2 shows the graphical
representation of diminishing value method. The initial value P of the equipment reduces,
through depreciation, to the scrap value S over the useful life of the equipment. The depreciation
curve follows the path PA. It is clear from the curve that depreciation charges are heavy in the
early years but decrease to a low value in the later years. This method has two drawbacks.
Firstly, low depreciation charges are made in the late years when the maintenance and repair
charges are quite heavy. Secondly, the depreciation charge is independent of the rate of interest
which it may draw during accumulation. Such interest moneys, if earned, are to be treated as
income.

(iii) Sinking fund method. In this method, a fixed depreciation charge is made every year and
interest compounded on it annually. The constant depreciation charge is such that total of annual
instalments plus the interest accumulations equal to the cost of replacement of equipment after
its useful life.
Let

P = Initial value of equipment

n = Useful life of equipment in years
S = Scrap value after useful life
r = Annual rate of interest expressed as a decimal
Cost of replacement= P S

Let us suppose that an amount of q is set aside as depreciation charge every year and interest
compounded on it so that an amount of P - S is available after n years. An amount q at annual
interest rate of r will become *q(1 + r)n at the end of n years.

Now, the amount q deposited at the end of first year will earn compound interest for n - 1
years and shall become q(1 + r)n - 1 i.e.,
Amount q deposited at the end of first year becomes
= q (1 + r)n - 1
Amount q deposited at the end of 2nd year becomes
= q (1 + r)n 2
Amount q deposited at the end of 3rd year becomes
= q (1 + r)n - 3
Similarly amount q deposited at the end of n - 1 year becomes
= q (1 + r)n - (n - 1)
= q (1 + r)
. '. Total fund after n years

= q (1 + r)n- 1 + q (1 + r)n- 2 + .... + q (1 + r)

= q [(1 + r)n- 1 + (1 + r)n-2 + .... + (1 + r)]

This is a G.P. series and its sum is given by :

This total fund must be equal to the cost of replacement of equipment i.e., P - S.

The value of q gives the uniform annual depreciation charge. The parenthetical term in eq. (i)
is frequently referred to as the "sinking fund factor".

Though this method does not find very frequent application in practical depreciation
accounting, it is the fundamental method in making economy studies.

Example 4.1. A transformer costing Rs 90,000 has a useful life of 20 years. Determine the
annual depreciation charge using straight line method. Assume the salvage value of the
equipment to be Rs 10,000.

Solution :

Example 4.2. A distribution transformer costs Rs 2,00,000 and has a useful life of 20 years. If
the salvage value is Rs 10,000 and rate of annual compound interest is 8%, calculate the
amount to be saved annually for replacement of the transformer after the end of 20 years by
sinking fund method.
Solution :
Initial cost of transformer, P = Rs 2,00,000 Salvage value of transformer,
S = Rs 10,000 Useful life,
n = 20 years
Annual interest rate,

r = 8% = 0-08

Annual payment for sinking fund,

REVIEW QUESTION

Q-1. Determine most economical power factor when KW demand is constant.

Q-2.

Explain the concept of Co-generation with the help of example.

Q-3. Differentiate between fixed and operating cost of power plants. List the items which
constitute the fixed and operating cost.
Q-4.

Explain the concept of Energy Conservation.

Q-5. Explain the Off-Peak Energy utilization.

Unit 5
Tariffs
INTRODUCTION
1) Background: Tariffs
Tariffs are the most common kind of barrier to trade; indeed, one of the purposes of the WTO is
to enable Member countries to negotiate mutual tariff reductions. Before we consider the legal
framework that provides the discipline regarding tariffs, we must understand the definition of
tariffs, their functions, and their component elements (rates, classifications, and valuations).
(a) Definition of Tariff
A tariff is a tax imposed on the import or export of goods.1 In general parlance, however,
a tariff refers to import duties charged at the time goods are imported.2
(b) Functions of Tariffs
Tariffs have three primary functions: to serve as a source of revenue, to protect domestic industries, and to
remedy trade distortions (punitive function). The revenue function comes from the fact that the income
from tariffs provides governments with a source of funding. In the past, the revenue function was indeed
one of the major reasons for applying tariffs, but economic development and the creation of systematic
domestic tax codes have reduced its importance in the developed countries. For example, Japan generates
about 90 billion yen in tariff revenue, but this is only 1.7 percent of total tax revenues (fiscal 1996). In
some developing countries, however, revenue may still be an important tariff function. Tariffs is also a
policy tool to protect domestic industries by changing the conditions under which goods compete in such
a way that competitive imports are placed at a disadvantage. In point of fact, a cursory examination of the
tariff rates employed by different countries does seem to indicate that they reflect, to a considerable
extent, the competitiveness of domestic industries. In some cases, tariff quotas are used to strike a
balance between market access and the protection of domestic industry. Tariff quotas work by assigning
low or no duties to imports up to a certain volume (primary duties) and then higher rates (secondary
duties) to any imports that exceed that level. The WTO bans in principle the use of quantitative
restrictions as a means of protecting domestic industries, but does allow tariffs to be used for this
purpose.3 .

OBJECTIVES OF TARIFFS. GENERAL TARIFF FORM

Tariff Rates
Obviously, one of the most important components in tariff measures is the rate at which the tariff
is imposed. As noted in the discussion of the three functions of tariffs, any imposition of a tariff
has the potential to reduce the welfare of the world economy as a whole. Since 1947, the GATT
has been the standard bearer in an on-going process of reducing tariff levels. During tariff
negotiations (known as "rounds," the most recent of which was the "Uruguay Round"), countries
set ceilings on their tariff rates. This is known as the "bound rate" and refers to the highest
allowable rate, in contrast to the rate that is actually applied, which is referred to as the "effective
rate." The GATT has been successful in encouraging mutual reduction of these rates. Since the
conclusion of the Uruguay Round, there have been further efforts to reduce tariffs in specific
sectors. For examples, the Information Technology Agreement "ITA" successfully removed tariff
barriers to information equipment and technology, and the EVSL/ATL Initiative has been
discussed in APEC.

Tariff Classifications
Like tariff rates, tariff classifications represent one of the basic components of the tariff system.
National tariffs are organized in the form of tables that consist of tariff classification numbers
assigned to goods, and a corresponding tariff rate. The way in which an item is classified for
tariff purposes will have an important and palpable effect on the duties charged. When
classifications are applied in an arbitrary fashion, they can in effect nullify rate reductions. The
GATT contains no rules regarding tariff classifications. In the past, countries had their own
individual systems. However, as trade expanded countries recognized the need for more uniform
classifications, which resulted in the drafting in 1988 of the Harmonized Commodity
Description and Coding System or HS system at Customs Co-operation Council (CCC; also
known as the World Customs Organization or WCO). Today, most countries use a
harmonized system of six-digit tariff numbers.

Valuation
The final component in tariffs is the valuation of goods for tariff purposes. When countries
assign arbitrary values for tariff purposes, they render tariff rates meaningless. GATT Article VII
and the Agreement on Implementation of Article VII (Customs Valuation Agreement) define
international rules for valuation.4 Under Article 20 of the Custom Valuation Agreement and so
on, developing country Members may delay application of the this agreement for the particular
period if other members approved. As of January 2000, some forty members have delayed
implementation.
Economic Implications
This section analyses some of the basic economic issues associated with tariffs, specifically, why
they are preferable to quantitative restrictions, and why it is desirable that they be reduced. This
section then considers the importance of international tariff-reduction negotiations at the WTO.

FLAT DEMAND RATE, STRAIGHT METER RATE, BLOCK METER RATE

Flat rate
Description
A flat rate is the simplest tariff structure. For our analysis, this structure consists only of a single price per
kWh. That is,
Monthly Bill = Flat Price ($/kWh) x Monthly Usage (kWh).
More commonly, the flat rate is combined with a monthly customer charge.4 That is,
Bill = Customer Charge + Flat Rate ($/kWh) x Monthly Usage (kWh).
The distinguishing characteristic of a flat rate is that the marginal price to the customer does not change
with the level of usage or over time.

Economic Efficiency
Rating: Low
Notes: The price does not vary with expected or actual market conditions. The price tends to reflect
average costs more than marginal costs.

Stability in Utility Revenues and Customer Bills

Rating: Medium
Notes: Revenues / bills change with usage levels, which are affected by weather, economic
conditions, etc.
Utility Administrative Costs
Rating: Low
Notes: Bill calculation is easy and rates are set infrequently.
Metering Requirements
A standard energy meter is the only requirement.

TWO PART TARIFF:Definition

The purpose of a two-part tariff is to extract more of the consumer surplus,
by using a pricing scheme made up of two parts:
A fixed, one-time fee charged to each user that entitles the person to make
further purchases. It may be also called entry fee, set-up charge, or
enrollment fee.
A price per each unit purchased.

Necessary condition for utilizing a Two Part Tarif

Necessary conditions to take advantage of this strategy:
1. The supplier must have market power.
2. The producer must be able to control access.

How to determine the optimal two part tarif

5.3.1 A single kind of consumer
If there is one type of consumer and all consumers have the same demand
curve, then you can capture all the consumer surplus by setting price equal to
marginal cost and setting the fixed fee equal to the consumer surplus for
an individual consumer.
The process needed to set up this profit-maximizing two-part tariff (a two-part
tariff that extracts most available surplus from the consumers) is the following:
1 Lets assume we have N consumers, each with a demand curve Q(P). First, we
need to calculate each individuals Consumer Surplus, because this is the
optimal Tariff that needs to be applied. This surplus is equal to the area below
the demand curve and above the supply curve (or the marginal cost curve).
2 Second, we need to calculate how many units of output each consumer will
demand for the price level equal to the Marginal Cost. In other words we need to
calculate Q(MC).
3 We now have the optimal Fee per consumer, the optimal quantity of output
per consumer and the optimal price per unit of output. All we need is to
calculate the profits, which are given by:

 = N* T + N*(P * Q ) N*(MC * Q)
Note that if there are no fixed costs, because P = MC, the profits become:
= N* T + N*(MC * Q ) N*(MC * Q) = N*T
which means that the only profits will be given by the tariff portion.

If there are two types of consumers and all consumers within the same
group have the same demand curve then the way to capture all the
available consumer surplus is by maximizing the profit function with
respect to price. The reason for this to be true, is that this time we do not
know which of the following solutions would award us more profits:
1) sell only to the high-yield customers: set P =MC and the fee equal to the
surplus of the high-yield customers. This is identical to the one-type-ofconsumer case, discussed above.
4
2) sell to both types of consumers: set the fee equal to the surplus of the
low-yield consumers and then choose P so as to maximize total profit
(including the fees); this will result in P > MC.

POWER FACTOR DEPENDENT TARIFFS:What is Power Factor?

Power factor is the percentage of electricity that is being used to do useful work. It
is defined as the ratio of active or actual power used in the circuit measured in
watts or kilowatts (W or KW), to the apparent power expressed in volt-amperes or

kilo volt-amperes (VA or KVA). The apparent power also referred to as total power
delivered by utility company has two components.
1) Productive Power that powers the equipment and performs the useful work. It is
measured in KW (kilowatts)
2) Reactive Power that generates magnetic fields to produce flux necessary for the
operation of induction devices (AC motors, transformer, inductive furnaces, ovens
etc.). It is measured in KVAR (kilovolt-Ampere-Reactance). Reactive Power produces
no productive work. An inductive motor with power applied and no load on its shaft
should draw almost nil productive power, since no output work is being
accomplished until a load is applied. The current associated with no-load motor
readings is almost entirely "Reactive" Power. As a load is applied to the shaft of the
motor, the "Reactive"
Power requirement will change only a small amount. The Productive Power is the
power that
is transferred from electrical energy to some other form of energy (i.e. such as heat
energy or
mechanical energy). The apparent power is always in always in excess of the
productive power for inductive loads and is dependent on the type of machine in
use. The working power (KW) and reactive power (KVAR) together make up apparent
power, which is measured in kilovolt-amperes (KVA). Graphically it can be
represented as

The cosine of the phase angle between the KVA and the KW components
represents the power factor of the load. KVAR represents the non-productive
reactive power and is lagging phase angle. The Relationship between KVA, KW
and KVAR is non-linear and is expressed KVA2 = KW2 + KVAR2 A power factor of
0.72 would mean that only 72% of your power is being used to do useful work.
Perfect power factor is 1.0, (unity); meaning 100% of the power is being used for
useful work.
Disadvantages of low power factor

Many engineers are oblivious to the effects of low power factor. They view it only as a direct
charge on their electrical bill, and only when stated as such. Low power factor is a direct cost
to the utility company and must be paid for.
Direct costs of low power factor
Power factor may be billed as one of or combination of, the following:
1) A penalty for power factor below and a credit for power factor above a predetermined
value,
2) An increasing penalty for decreasing power factor,
3) A charge on monthly KVAR Hours,
4) KVA demand: A straight charge is made for the maximum value of KVA used during the
month. Included in this charge is a charge for KVAR since KVAR increase the amount of KVA.
Indirect costs of low power factor
Loss in efficiency of the equipment: When an installation operates with a low power factor,
the amount of useful power available inside the installation at the distribution transformers
is considerably reduced due to the amount of reactive energy that the transformers have to
carry. The figure below indicates the available actual power of distribution equipment.

Benefits of Power Factor Correction

Benefit 1 - Reduce Utility Power Bills
In areas where a KVA demand clause or some other form of low power factor penalty is
incorporated in the electric utility's power rate structure, removing system KVAR improves
the power factor, reduce power bills by reducing the KVA. Most utility bills are influenced by
KVAR usage.
Benefit 2 Increase System Capacity
The power factor improvement releases system capacity and permits additional loads
(motors, lighting, etc.) to be added without overloading the system. In a typical system with
a 0.80 PF, only 800 KW of productive power is available out of 1000 KVA installed. By
correcting the system to unity (1.0 PF), the KW = KVA. Now the corrected system will
support 1000 KW, versus the 800 KW at the .80 PF uncorrected condition; an increase of 200
KW of productive power. This is achieved by adding capacitors which furnish the necessary
magnetizing current for induction motors and transformers. Capacitors reduce the current
drawn from the power supply; less current means lesser load on transformers and
feeder.circuits. Power factor correction through devices such as capacitors can avoid an
investment in more expensive transformers, switchgear and cable, otherwise required to
serve additionalload. The figure below shows the empirical relationship of system capacity
vs. power factor.From the figure one can see that improving power factor from .8 to .9 or .8
to .95 shallrelease approximately 12% or 20% system capacity respectively.

Benefit 3 - Improve System Operating Characteristics (Gain Voltage)

A good power factor (0.95) provides a "stiffer" voltage, typically a 1-2% voltage rise can be
expected when power factor is brought to +\-0.95. Excessive voltage drops can make your
motors sluggish, and cause them to overheat. Low voltage also interferes with lighting, the
proper application of motor controls and electrical and electronic instruments. Motor
performance is improved and so is production. An estimate of voltage rise from the
improved power factor with the installation of power capacitors can be made using following
equation:
Benefit 4 - Improve System Operating Characteristics (Reduce Line Losses)
Improving power factor at the load points shall relieve the system of transmitting reactive
current. Less current shall mean lower losses in the distribution system of the facility since
losses are proportional to the square of the current (I 2R). Therefore, fewer kilowatt-hours
need to be purchased from the utility.
An estimate of reduction of power losses can be made using following equation:

THREE-PART TARIFF:Introduction
We observe nonlinear pricing in many markets, that is, pricing arrangements where
payment is not strictly proportional to the quantity of purchases. In the literature,
implementation of nonlinear pricing is typically studied as a single two-part tariff or
as a menu of two-part tariffs. Further, with a few notable exceptions, the existing
literature applies a setting with a monopoly firm where nonlinear pricing is
implemented by two-part tariffs. However, it is easy to verify
that this does not sufficiently describe the practice of nonlinear pricing. Firstly,
nonlinear pricing is a common practice in duopoly and oligopoly markets as well as
in monopolies. Secondly, we frequently observe that other tariff arrangements
rather than just two-part tariffs are used. The purpose of this paper is to make a
contribution in the second part of the gap between theory and practice within the
field of nonlinear pricing. We examine whether the fact that there is competition
between two firms instead of a monopoly significantly changes the tariff structure.

We find that implementation by two-part tariffs may not be a feasible strategy in a

duopoly, but if a firm can use a combination of two-part and threepart tariffs, a fully
nonlinear pricing schedule can be implemented. Three-part tariffs are used for small
quantity purchases while two-part tariffs are used for large quantity purchases.
Furthermore, quantity discounts are given for larger
purchases only. Finally we show that this is in fact what firms actually do in the
telecommunications market, where we observe competition rather than monopoly.
The market perception of what are reasonable tariff structures would vary according
to what kind of market one is studying. However, menus of two-part and three-part
tariffs are frequently used and it seems natural to restrict the analysis to menus of
piecewise linear tariffs. A firm confronts consumers with a menu of tariffs and
consumers make their optimal quantity choice subject to the tariff chosen and are
also billed according to this tariff. Under two-part tariffs consumers receive larger
quantity discounts if they are willing to pay a larger fixed fee in advance. Three-part
tariffs can be implemented in two different ways; Consumers may commit to a
specific minimum usage level and pay a flat fee until this level is reached. The
higher the minimum usage consumers commit to the higher discount they get.
Another way to implement a three-part tariff is to apply larger discounts when
realized usage exceeds some specific threshold
level during a billing period.

Optimal allocations

Firm 0s objective is to maximize profit subject to the individual rationality

constraint and the (downward binding) incentive constraint. Profit maximization is a
separate problem for each [0, 1/2]. The objective is

We use optimal control to solve the problem, imposing only the first order
condition for incentive compatibility at the first stage (8). When we know the
sign of the information rent, we are able to state the initial and terminal
values of the state variable U0. From now and onwards, we drop the
subscript on q, since the only q we are talking about is q0 except when we
denote the quantity level in the outside option q1 = q. The objective is

Although we will check whether the candidate for a quantity schedule meets the
monotonicity constraint, we can tell by now that there is a fairly good chance that it
does. The expression in the bracket parenthesis is zero or positive so the condition
expresses that the marginal distortions when the IR constraint bind can be more
than opposite the marginal distortions when the constraint is not binding.

(II) SELECTION OF POWER PLANTS

COMPARATIVE STUDY OF THERMAL, HYDRO, NUCLEAR AND GAS
POWER PLANTS:Steam power
Located where water
and coal and
transportation facilities
are adequate
Initial cost is lower
than hydro and nuclear.

Running cost is higher

than nuclear and hydro
due to amount of coal
required.
Coal is source of
power. So limited
quantity is available.
Cost of fuel
transportation is
maximum due to large
demand for coal.
Least environment
friendly
25% overall efficiency.
Maintenance cost is
very high.

Maximum standby
losses as boiler still
keeps running even
though turbine is not.

Hydro electric
Located where large
reservoirs or dams can
be created like in hilly
areas
Initial cost pretty high
due to large dam
construction.

Diesel power
Located anywhere as
very less water is
required.

Nuclear power
Located in isolated
areas away from
population.

Initial cost is the least. Initial cost is highest as

cost of reactor
construction is very
high.
Practically nil as no
Highest running cost Cost of running is low
fuel is required.
due to high price of
as very very less
diesel.
amount of fuel is
required.
Water is source of
Diesel is source of
Uranium is fuel source
power which is not a power which is the
along with platinum
dependable quantity. least available among rods. So sufficient
all.
quantity is available.
No cost for fuel
Higher than hydro and Cost of fuel
transportation
nuclear power plants. transportation is
minimum due to small
quantity required.
Most environment
A good friend of
Better friend of
friendly
environment than steam environment than steam
or nuclear.
power plant.
Around 85% efficient. About 35% efficient. More efficient than
steam power.
Maintenance cost is
Maintenance cost is
Maintenance cost is the
quite low.
less.
highest as highly
skilled workers are
required.
No standby losses.
Less standby losses.
Less standby losses.

Base Load And Peak Load Plants

The load on any power plant can be considered into two parts namely

Base Load Plants

Peak Load Plants

Load in a power system varies all the day. Electrical power generated by the generating stations
depends on the demand for electrical power. During day time demand for electricity will be more
and hence all the generating units will be running under full load. During nights, load on the
generating stations will be less. The unvarying load which occurs almost the whole day on the
power plant is called the base load. Whereas the various peak demands of the load over and
above the base load of the power plant is called peak load.
If the load represented in the figure is to be supplied by the single power plant only, the installed
capacity of the plant should be equal to the peak load demand or more. Such a power plant is
uneconomical since the peak load occurs only for a short duration in a day or in an year. Hence
such a peak load should not be supplied from a single power plant. Therefore there should be an
optimum mix of the power plants which supply the base load round the year and some other
power plants of different type supply power to the peak load plants. Thus the co-ordination of
operation of different power stations is essential.The power plants to be employed as base load
plants should have some of the characteristics:

Low operating cost

Capability of operating for longer periods

Maintenance should be simpler and requires less time. Time duration between the
maintenance should be long

Requires few operating personnel

Size And Types Of Generating Units

When renewable energy advocates talk about phasing out coal-fired power plants in favor of
renewables, they'll often use one of a pair of phrases to describe a power plant's output: "base
load" and "peaking," a.k.a. "peaker." Some plants, like coal-fired and nuclear power plants, put
out base load power. Others, like solar and most gas-fired power plants, generate "peaking"
power. You'll sometimes hear statements to the effect that solar panels won't replace coal because
coal is base load and solar is peaking.
It almost sounds as though the two are different flavors of electrical power. They're not. Base
load and peaker power plants feed the same electrical power into the grid. The difference
between base load and peaking power isn't in the power itself: it's in the economics and
engineering limitations of the power plant.

Electrical power demand rises and falls during the course of a typical day. We tend to use less
power at 2:00 am than we do at 2:00 pm. Even in our 24/7 world, most of us wake up in the
morning, turn on our appliances, crank up the air conditioning in mid-afternoon if we're hot, turn
on electric lights in the evening for a few hours, then turn them off again and go to sleep. At that
point our power demand slows again. We need power for streetlights and traffic lights, hospitals,
police and fire stations and businesses with graveyard shifts, a trickle to charge our phones and
laptops. Chart out power consumption over the course of the day and you'll see a peak in the
afternoon and evening:
As you can see, even when California is on "standby" setting, around 5:00 am or so, we still
consume a considerable amount of power. That's the power consumption base load. And then
when we start using air conditioning, and to a slightly lesser extent when we start using
electricity for lighting in the evening, our power consumption peaks.
Which is a good first-approximation definition of "base load" power -- the minimum amount the
grid has to have to run society -- and "peaking" power, which provides a cushion against peaks
both anticipated and unanticipated. Like most things electric power related, things are more
complicated than that if you look closely. Base load power doesn't stay constant during the day:
it increases as demand increases, and so base load actually has peaks and valleys. It gets
confusing.
But most of us don't need to examine the confusing details. Base load power is the day-to-day
steadfast power we need 24/7, and peaking power is what we fire up when we need more.
A power plant supplying base load power needs to be able to run for months on end without
needing to be taken down for maintenance, and it's best if the fuel costs are relatively low.
However, since base load power plants are rarely taken offline, it's not a huge problem if it takes
them a while to start up.
A peaking power plant is one we can switch on when we need additional power, which will come
online without much delay and start generating power on a moments' notice. As peaker plants are
used for less time over the course of a year, it's not as crucial that the cost of fuel be low.
Typical base load power plants are coal-fired, nuclear and hydroelectric. Geothermal can also
provide base load power. Base load power plants tend to be expensive to build, and coal and
nuclear take days to reach full power once fired up. But fuel costs per kilowatt generated tend to
be low, at least if you don't count the ecological costs.
Peaking power plants have traditionally been fueled by either natural gas, diesel oil, or jet fuel.
The last two are significantly more expensive than gas, especially since the advent of fracking
has pushed natural gas prices through the floor. Most peak power in the US comes from gas-fired

plants. Despite gas' low price these days, peak power remains more expensive per kilowatt than
base load. Hydro can also be used as a peak power source, as ramping up power production from
a hydroelectric dam is generally a matter of letting a bit more water in
Solar power plants, by virtue of using the sun as fuel directly, can only produce power when the
sun is shining (or, if expensive storage is added to a solar thermal plant, for a few hours
afterward). As sunny afternoon hours more or less coincide with peak electrical demand, solar
power plants are peaker plants, and will be until engineers make either thermal or grid storage a
reality.
There's also an intermediate kind of power plant, referred to as "load-following" plants, in areas
with high electrical demand. Load-following plants supplement the power produced by base load
plants, but run for longer periods of time during a typical day -- or 24 hours, but with lower
output at night. Wind, by the way, is an odd person out. In most places it's not constant enough to
be base load, and not reliable enough to provide a secure source of peaking power. If we get to
the point where large numbers of wind turbines in widely separated locations are all hooked
together through the grid, some of that unpredictability will go away: wind dying down in one
place might well be made up for when it picks up somewhere else. For now, wind tends to be a
continually moving monkey wrench in the engineers' careful daily planning of power supply and
demand.

Types Of Reserve And Size Of Plant.

The choice of plant, unit rating, and site is a similarly complex, interrelated process .As indicated
in the range of unit ratings that are commercially available is quite different for each of the
various systems. If, for example, a plant is needed with a capacity rating much above 100 MW,
combustion turbine, diesel, and geothermal units could not be used unless multiple units were
considered for the installation .Similarly, the available plant sites can have an important impact
upon the choice of fuel, power-generating system, and rating of the plant. Fossil-fuel or nuclearenergy steam-cycle units require tremendous quantities of cooling water [50.5 to 63.1
m3/s(800,000 to 1,000,000 gal/min)] for a typical 1000-MW unit, whereas gas-turbine units
require essentially no cooling water. Coal-fired units rated at 1000 MW would typically require
over 2.7 million tonnes (3 million tons) of coal annually, whereas nuclear units rated at 1000
MW would typically require only 32.9 tonnes (36.2 tons) of enriched uranium dioxide (UO2)fuel
annually .Coal-fired units require disposal of large quantities of ash and scrubber sludge, whereas
natural-gas-fired units require no solid-waste disposal whatsoever. From each ofthese
comparisons it is easy to see how the choice of energy source and power-generating system can
have an impact on the appropriate criteria to be used in choosing a plant site .The location and
physical characteristics of the available plant sites (such as proximity to and availability of water,
proximity to fuel or fuel transportation, and soil characteristics)
Figure 2 shows a general power system load pattern for a single day. It shows the different time
frames where different strategies are used to ensure that the load is balanced. Forward scheduling

of the power system includes schedules and unit commitment directions to meet the general load
pattern of the day. Load following is the action to follow the general trending load pattern within
the day. This is usually performed by economic dispatch and sometimes involves the starting and
stopping of quick-start combustion turbines or hydro facilities. Regulation is the balancing of fast
second-to-second and minuteto-minute random variations in load or generation. This is done by
centralized control centers sending out control signals to generating units (and some responsive
loads) that have the capability to rapidly adjust their dispatch set points. These strategies
represent the balancing during normal conditions of the power system. The load is never constant
and therefore each of these strategies helps correct the load balance. Also, conventional
generation output may vary in different time scales as well and can further impact the generation
and load balance. Lastly, the load forecast is never 100% accurate and each of these reserves is
used to help mitigate the effects of load forecast errors.
During loss of supply events, additional supply needs to respond to the disturbance immediately.
As can be seen in Figure 3, this includes a number of different responses that vary by response
time and length of time the response is sustained. Initially, when the loss of supply occurs,
synchronous machines must supply kinetic energy to the grid, and by doing so, slow down their
rotational speeds and therefore the electrical frequency. This inertial response that comes from
synchronous generators and synchronous motors helps slow down the frequency decline. In other
words, the more inertia on the system, the slower the rate of frequency decline. During this
decline in frequency, generators will automatically respond to the change in frequency through
governor response, and some load response will balance the generation and load at some
frequency less than the nominal frequency. Spinning reserve that is synchronous to the grid and
unloaded from its maximum rating and non-spinning reserve, which can be off-line but able to be
synchronized quickly, are both deployed to fill the gap in energy needed from the loss and restore
the frequency back to its nominal level. Furthermore, many areas have spot prices that may
increase during supply shortages and incentivize response from resources that can assist in the
event. Lastly, supplemental reserves are deployed with slower response to allow the other
reserves to be unloaded once again so that the system can be again secure for a subsequent event.
For over-frequency events, though not as common, a similar response might occur, but a
reduction in output would be needed rather than an increase.

Proper Site Selection for a Thermal Power Plant

You might think that selecting a site for a thermal power plant is based on requirements of power
of the nearby regions but it is not so in actual practise. The engineer needs to take dozens of
factors into account before commencing such a project and here is a list of the same.

Introduction

Selecting a proper site for a thermal power plant is vital for its long term efficiency and a lot
many factors come into play when deciding where to install the plant. Of course it may not be
possible to get everything which is desirable at a single place but still the location should contain

an optimum mix of the requirements for the settings to be feasible for long term economic
justification of the plant.

The Requirements for the Site

As the name implies the power plant is meant for generating power which obviously means that
it will consume huge quantities of fuel. The exact quantity would depend on the size of the plant
and its capacity but it is a general fact that ample quantities of fuel must be available either in the
vicinity or it should be reasonably economical to transport the fuel till the power plant. Since
most thermal power plants use coal (they can use other fuels as well) it must be ensured that
sufficient coal is available round the clock. Just to give you a rough idea a power plant with 1000
MW capacity approximately would require more than ten thousand tons of coal per day hence
the necessity for continuous supply and storage capability of coal in the power station.
Ash if the main byproduct of combustion and since the amount of coal used is huge, you can
intuitively imagine the amount of ash generated and it is certainly in the region of thousand tons
per day. Ash is much more difficult to handle as compared to coal since it comes out hot from the
boiler and is very corrosive in nature. Disposing of such huge quantities of ash requires a large
amount of empty space where it can be safely dumped.
There must be ample space for the storage of coal, disposal of ash, building of the power plant,
residential colony of workers, markets and so forth. An approximate analysis suggests that for
every MW of power generated there must be at least 3 acres of land available for the purpose.
Hence the power plant site needs to have good amount of land and this land should have good
bearing capacity in order to survive the static and dynamic loads during the operation of the
plant.
As we saw in the previous article of this series, large amount of water is required for cooling
purposes in the power plant hence it is better if such a source is available nearby in the form of
rivers etc.
Apart from these major requirements there are also other requirements which are equally
important such as the availability of skilled people to work for the plant and good transport
facilities in the vicinity.
Hence we see that setting up a thermal power plant requires a lots of factors to be considered
simultaneously.

REVIEW QUESTION

Q-1. What do you understand by tariff? Discuss the objectives of tariff.

Q-2. Describe the desirable characteristics of a tariff.
Q-3. Describe the some of the important types of tariff commonly used.
Q-4. Write the short notes on the following:
I.
Two part tariff
II.
Power factor tariff
III.
Three part tariff
IV.
Q-5. A consumer has a maximum demand of 200 KW at 40%load factor. If the tariff is Rs. 100
per kw of maximum demand plus 10 paisa per kwh, find the overall cost per kwh.