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.