Given a combustion turbine power plant with a capacity facto

Given a combustion turbine power plant with a capacity factor of 0 15 and a fixed charge rate of 13%. The plant has the following costs parameters Capital Cost = $400/kW Heat Rate = 10.300 BTU/kWh fuel Cost = $4 50/MMBTU Variable O&M; Costs = $0.0062/kWh What is the unit cost of electricity for this plant? 3.42cents/kwh 7.66cents/kwh 5.25cents/kwh 9.21cents/kwh

Solution

Given

Capital Cost = $ 400/kW

Heat Rate = $10,300 BTU/kWH

Fuel Cost = $4.50 / MMBTU

Variable O&M Costs = $0.002 / kWh

Here I am considering 1kW system was installed and operating for 25 years.

Unit cost of electricity is given by

Unit Cost (Cost/kWh) = Total Cost of the System / No.of Units generated

consider 1 KW system

BTU means British Thermal Unit which measures energy content in fuel.

No.of units can be generated by the system in one year = 1*365*24 = 8760 units

Average demand = Capacity factor * Units generated per year = 8760*0.15 = 1314 units per year

Fuel required to generate this energy is = 1314*10300 = 13534200 BTU

Cost of Fuel is = $4.50*10^-6 *13534200 = $ 60.9039

Total Cost = Initial cost + Fuel Cost + O&M variable cost + Fixed Charge

= $ (400 + 60.9039 + 0.0062*1314 + 52) =$ 521.0507

Unit Cost = 521.0507/1314 = $ 0.39 if operated for one year

Unit Cost = (400 + (52*25) + (60.9039*25) + (0.0062*1314*25))/(1314*25) = 3426.2675 / 32850 = 10.43 cents/kWh if operated for 25 year T

NOTE :- Cost of unit energy generated by total input cost and no.of years it will operate. Other wise cost will be very high.