Power System Economics and Tariff

Explore power system economics and tariff concepts, defining cost of energy with interest and depreciation, fixed and semi fixed costs, running costs, maximum demand, and the two-part tariff.

Explore depreciation methods for power stations, including diminishing value, straight-line, sinking fund, and sum of years digits. Learn how annual deposits and compound interest build replacement funds and how benefits influence depreciation timing.

This lecture covers depreciation of power stations with straight-line, diminishing value, and sinking fund methods, using a 1 MW solar plant example and a 5% rate.

Compare diesel and rooftop solar options for a 100 kW load and calculate the cost of energy and annual costs using fuel, maintenance, depreciation, and wages.

Learn to differentiate uniform rate, flat-rate, and block-rate tariffs, including per-unit energy charges, fairness, and suitability for residential and small consumers.

Calculate power system tariffs using uniform rate, flat rate, and block rate with a residential example, computing monthly energy consumption and bills for January 2021.

Explore how power system tariffs are calculated, distinguishing contract maximum demand from maximum demand tariffs, and compare two-part and three-part structures with fixed charges, energy charges, and demand charges.

Calculate power system tariffs using two-part, maximum-demand, and three-part structures, applying fixed charges, demand (sanction and meter) values, and energy consumption to determine January bills.

Calculate the January 2021 power bill for ABC Manufacturing Company Private Ltd. by deriving average active and reactive power, then applying fixed and sliding scale tariffs based on maximum demand.

Explore the apparent energy (kVAh) tariff and how charging reactive power alongside active energy impacts voltage at the point of common coupling and cost recovery.

Explain time-of-day tariff and demand-side management to shift electricity use from peak to off-peak hours, improving load factor and system reliability. Highlight incentives and penalties that encourage shifting consumption.

Calculate kbH and savings from installing a capacitor bank under kVAh and TOD tariff in a practical industrial case, and verify results with an online calculator.