Important Questions of Economics of Power Generation:

1. Explain the terms interest and depreciation as applied to economics of power generation.

2. Discuss the different classifications of costs of electrical energy.

3. Give the basis for expressing the cost of electrical energy as a + b kW + c kWh and explain the factors on which a, b and c depend.

4. Discuss the various methods of determining the depreciation of the equipment.

5. Enlist the effects of high load factor on the operation of power plants.

6. Write short notes on the following :

(i) Advantages of high load factor.

(ii) Sinking fund method of depreciation.

(iii) Three-part form of cost of electrical energy.

7. What is the importance of interest on capital investment in calculating the cost of electrical energy ?

8. What is the significance of depreciation in the economics of power generation ?

9. Why is fixed cost independent of maximum demand and units generated ?

10. How does high load factor reduce the variable load problems on the power station ?