Generation Cost Calculation For 660 MW Thermal Power Plants

Abstract

The Central Electricity Regulatory Commission (CERC) has the power of deciding the tariff for electricity generated by various power stations. Tariff is calculated on the basis of capacity charge (fixed cost) and energy charge (variable cost). The various components of capacity charge on which the tariff depends are return on equity, interest on capital loan, depreciation, interest on working capital, operation & maintenance cost, cost of secondary oil. The components of energy charge are primary fuel costs, secondary fuel oil consumption and auxiliary energy consumption. Tariffs are classified into Nominal, Discount and Levelized tariff. Tariff calculations for 660 MW thermal power plants have been discussed.