3. The community owns a 300 MW Natural Gas power plant and has been purchasing e
ID: 1108589 • Letter: 3
Question
3. The community owns a 300 MW Natural Gas power plant and has been purchasing electricity "off the grid during times when they cannot meet demand. The cost of electricity has been $.15/kwh during intermediae summer and $.30/kwh during summer peak. Community leaders are considering options to lower the overall cost of electricity. Option (1) involves building an expansion to the existing Natural Gas plant. This expansion would be a gas turbine which could be "revved up and down" rapidly. They would issue 30-year municipal bonds at 5% to finance the project. (Ignore all taxes). A. Calculate the Capacity Factor of a 300 MW expansion [Note: Just the expansion]. B. Calculate the cost/kwh of electricity generated by the new addition and compare this to the annual cost of "off-the-grid" purchases. Cost data: Capital Cost $800/Kw, Efficiency 38%, Fuel cost $1.00/therm ,Annual O&M $20/KW+ $3.00/MMBTU
You are given this information:
Load Curve Off-Peak Season Summer (90 days)
Baseload (10 PM-6 AM) 200 MW 300 MW
Intermediate 300 MW 400 MW
(6 AM-2 PM, 6 PM-10 PM)
Peak (2 PM-6 PM) 300 MW 600 MW
Explanation / Answer
Answer a
The capacity factor = average power generated during a period/ maximum power it can generate
that is,
(600/ 300*90)*100 = 66.96%
Answer B
Capital Cost $800/Kw
Fuel cost $1.00/therm
Annual O&M $20/KW+ $3.00/MMBTU
Hence total cost = 800+1+20+3= $824
Considering the peak summer extra demand of 400MW, the cost of the off-grid purchase = 400*90*.30=10800
Hence, compared to the off-grid purchase, the cost of installing the expansion is less
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.