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A generator is supplying a load. An incremental change in load of 4 MW requires generation to be increased by 6 MW. The cost at plant bus is ₹ 30/MWhr. The incremental cost at the receiving end is
  • a)
    ₹ 30/MWhr
  • b)
    ₹ 5/MWhr
  • c)
    ₹ 33.4/MWhr
  • d)
    ₹ 6.0/MWhr
Correct answer is option 'B'. Can you explain this answer?
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A generator is supplying a load. An incremental change in load of 4 MW...
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A generator is supplying a load. An incremental change in load of 4 MW...
Incremental Cost at Receiving End

Explanation:

Incremental cost is the cost of generating an additional unit of power to meet the incremental load demand. In this problem, we have to find the incremental cost at the receiving end.

Given data:

Incremental load = 4 MW

Increase in generation = 6 MW

Cost at plant bus = $30/MWhr$

Solution:

We know that

Incremental cost = (Increase in cost) / (Increase in generation)

Increase in cost = Incremental load x Cost at plant bus

Increase in cost = 4 x $30/MWhr$

Increase in cost = $120

Increase in generation = 6 MW

Incremental cost = $120 / 6 MWhr

Incremental cost = $20/MWhr

We know that the power is transmitted from the plant bus to the receiving end through transmission lines. The transmission losses occur during the transmission of power. Hence the incremental cost at the receiving end is more than the incremental cost at the plant bus.

The incremental cost at the receiving end can be calculated as follows:

Incremental cost at receiving end = Incremental cost at plant bus + Transmission cost

Transmission cost = Transmission loss x Cost at plant bus

Transmission loss is given by

Transmission loss = (Incremental load / (Incremental load + Increase in generation)) x 100%

Transmission loss = (4 / (4 + 6)) x 100%

Transmission loss = 40%

Transmission cost = 40% x $30/MWhr$

Transmission cost = $12/MWhr

Incremental cost at receiving end = $20/MWhr + $12/MWhr

Incremental cost at receiving end = $32/MWhr

Hence the correct option is (B) 5/MWhr.
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A generator is supplying a load. An incremental change in load of 4 MW requires generation to be increased by 6 MW. The cost at plant bus is ₹ 30/MWhr. The incremental cost at the receiving end isa)₹30/MWhrb)₹ 5/MWhrc)₹33.4/MWhrd)₹6.0/MWhrCorrect answer is option 'B'. Can you explain this answer?
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