Scribd
Upload
673 views

Power System Economics and Management

The document discusses four characteristic curves - fuel cost, heat rate, input-output, and incremental cost curves - that describe the efficiency and costs of operating a power generating unit. It also briefly discusses the traditional vertically integrated utility model and the introduction of power exchanges for electricity trading.

Uploaded by

Srinivas Yelisetti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
673 views

Power System Economics and Management

The document discusses four characteristic curves - fuel cost, heat rate, input-output, and incremental cost curves - that describe the efficiency and costs of operating a power generating unit. It also briefly discusses the traditional vertically integrated utility model and the introduction of power exchanges for electricity trading.

Uploaded by

Srinivas Yelisetti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Power System Economics and

Management
Generator Cost curves
Four characteristic curves describe the efficiency
and resulting costs associated with operating a
particular generating unit. These four curves
plot
• Fuel Cost
• Heat Rate
• Input-Output
• Incremental Cost
Fuel Cost Curve
• The fuel cost curve specifies the cost of fuel used per hour by the generating
unit as a function of the unit’s MW output. This is a monotonically increasing
convex function.
Heat-rate Curve
• The heat rate curve plots the heat energy required per MWH of generated
electrical output for the generator as a function of the generator’s MW output.
Input-Output Curve
• The input-output curve is derived simply from the heat-rate curve by
multiplying it by the MW output of the unit. This yields a curve showing the
amount of heat input energy required per hour as a function of the generator’s
output.
Incremental Cost Curve
• By multiplying the input-output curve by the cost of the fuel in Rs./MBTU, one
obtains the cost curve for the unit in Rs./hr. By taking the derivative of the cost
curve, one obtains the incremental cost curve, which indicates the marginal
cost of the unit: the cost of producing one more MW of power at that unit.
Utility Functions
• Power systems traditionally have been what are known as
"vertically integrated utilities".
• In this type of structure, one utility handles the all functions of
generation, transmission and distribution within a certain
geographical area.
• The operation and coordination of such a system is somewhat
simple, since all functions are controllable by a system operator.
• The operational objectives were to provide quality power
(voltage and frequency nearly constant) to a consumer, while
ensuring reliability and overall economy (low cost).
• The price of power was "regulated" and based on actual costs.
Power Exchanges
• Electricity trading through Power Exchanges
(PX) is hitherto introduced in many electricity
markets. In India, two power exchanges viz.,
Indian Energy Exchange (IEX) and Power
Exchange of India Ltd. (PXIL) are functioning
with guidance from Central Electricity
Regulatory Commission (CERC).

You might also like