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Summary Economics of Power Generation
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Electrical Engineering Second Year, Power Generation Technology
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MCOs on Power Generation Technology
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1, Tariff and Economic aspects in power Generation
Introduction
• The function of a power station is to deliver power to a large number of
consumers. However, the power demands of different consumers vary in
accordance with their activities.
• The result of this variation in demand is that load on a power station is
never constant, rather it varies from time to time.
• The power demanded by the consumers is supplied by the power
station through the transmission and distribution networks. As the
consumers’ load demand changes, the power supply by the power
station changes accordingly.
2
, Base loads and Peak loads
• Base load is the minimum level of electricity demand required over a
period of 24 hours. It is needed to provide power to components that
keep running at all times (also referred as continuous load).
• Peak load is the time of high demand. These peaking demands are often
for only shorter durations. In mathematical terms, peak demand could
be understood as the difference between the base demand and the
highest demand.
• The examples of household loads: microwave oven, toaster and
television are examples of peak demand, whereas refrigerator and HVAC
systems are examples of base demand.
• This constant power, which is required at all times, is called the base
loading. But during a special event, like the final match of World Cup, the
demand will be more, as a lot of people will watch TV. This short, high
demand period is considered to be a peak loading. 3
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