Electricity power generation capital cost

Electric power systems can be thought of as being comprised of three important sectors generation, transmission, and distribution. For most utilities, generation capital equipment costs account for approximately 50 percent of total plant in costs. Generation also accounts for close to 75 percent of total operation and maintenance expense. 

Thermal power plant is more commonly associated with very large central power stations. The capital cost for thermal power plant, in terms of cost per installed kilowatt of electrical generating capacity, rises sharply for outputs of less than some 15 MW. It is for this reason that thermal power plant is not usually considered for industrial applications unless it is the combined cycle or combined heat and power modes. However, for cases where the fuel is of very low cost (for example, a waste product from a process such as wood waste), then the thermal power plant, depending on output, can offer an excellent choice, as its higher initial capital cost can be offset against lower running costs. This section introduces the thermal power cycle for electrical generation only. 

One of the major costs in the electrolytic production of chlorine is electrical power. Should the power be purchased, or is a power generating station to be built If a power generator is to be built, should it be built large enough so that it can provide power for future expansions and for other existing plants the company may own in the general area The answers to these questions will greatly affect the amount of capital the company must allocate for the project. 

When coal is used in electricity generation, the heat is used to create steam, which is then used to power turbine generators. Approximately 40% of Earth s current electricity production is powered by coal, and the total known deposits recoverable by current technologies are sufficient for at least 300 years of use. Modem coal power plants utilize a variety of techniques to limit the harmfulness of their waste products and to improve the efficiency of burning, although these techniques are not widely implemented in some countries, as they add to the capital cost of the power plant. 

Today, the largest solar power plant in the United States is the 22-year-old thermal plant in California s Mojave Desert, which has a combined total capacity of 354 mW. At Kramer Junction, California, nine solar power plants, each 30 mW or larger, have been in operation for two decades. The yearly insolation in the area is 2,940 kWh/m2. Plant efficiencies range from 10 to 17%, and their capital costs range from 2,500 to 3,500 per kWp The cost of generated electricity from these plants drops as their size increases, and ranges from 10 to 17 /kWh. 

A small but growing photovoltaic industry now exists with worldwide sales between 300 million and 400 million. The United States and Japan account for 75% of worldwide sales, but European firms are increasingly active, with over 17% of the market [9]. Panel prices are about 5 per peak watt. With this capital cost and today s attendant equipment costs, electric power can be generated for between 30 and 40 cents per kilowatt-hour. 

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