Differences Between Isolated and Integrated Operation

Some of the differences between isolated operation and integrated operation

Isolated operation

Integrated operation

The individual plants in the system retains identity .

The individual plants identity in the system merges .

The initial cost of the plant is higher due to the reserve capacity.

The initial cost of the plant is low due to the shared resources.

In isolated operation systems operate individually.

In integrated operation systems are interconnected and operate as whole.

It requires significant reserve capacity .

Reserve capacity requirement is low .

There is no central control office .

It requires central control office.

In these systems , reliability is less due to isolated setup .

In these systems , reliability is high due to interconnection .

Each system manages its load independently .

It is having coordinated load management across the network .

Limited maintenance required for each plant.

Centralized maintenance is required .

Economics of Power Generation

Here in this article, we will discuss the economics of power generation, terminologies used in the economics of power generation, isolated and integrated operations, and their differences , merits of integrated operation, classification of cost of electrical energy, tariff and its types and power generation charges briefly.

Table of Content

  • What is the Economics of the Power System?
  • Terminologies

  • Isolated and Integrated Operation
  • Differences Between Isolated and Integrated Operation
  • Advantages
  • Cost of Electrical Energy
  • Tariff – Its Types
  • Solved Example

  • Conclusion

  • Frequently Asked Questions

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What is the Economics of the Power System?

The economics of power generation is the process of calculating the cost of producing electrical energy per unit (i.e. KWH). Customers utilize electric power when it is supplied at reasonable rates. So, power engineers have to find cost-effective methods to provide electricity to customers at affordable prices....

Terminologies

Several terms are used in connection with power supply to an area . some of them are given below :...

Isolated and Integrated Operation

The isolated and integrated operations are discussed below:...

Differences Between Isolated and Integrated Operation

Some of the differences between isolated operation and integrated operation...

Advantages of Economics of Power Generation

Enhanced reliability of the power supply due to the interconnected systems . The need for reserve capacity is reduced . Optimized resource utilization which reduces waste and maximizes the efficiency. Improved grid stability which reduces frequency deviations and voltage fluctuations . Increased flexibility in managing demand which allows more flexible response for changing conditions . Lower operational costs leads to more cost effective electricity generation . It can be expanded more easily to accommodate growing energy demands by adding capacity and integrating new sources of generation. Interconnected systems provide redundancy ,ensuring that if one part of the system fails , then other parts continue to supply electricity ....

Cost of Electrical Energy

The cost of electrical energy is defined as the amount of money required to generate and produce a unit of electricity . There are three types of cost of electrical energy . They are :...

Tariff – Its Types

Tariff is the price that is charged for the energy supplied to the consumers . The energy produced by the power station is supplied to large number of consumers .The consumers utilize electricity when it is supplied at reasonable prices. The tariff includes total cost of producing electrical energy and also earns profit . The main objective of tariff is not only to return the cost but also earns reasonable profits . It recovers the cost on the capital investment in transmission and distribution , cost of producing electrical energy in the power station and cost of operation and maintenance of electrical energy . There are different types of tariffs . Some of them are :...

Solved Example

Determine the demand factor and the load factor of a generating station , which has a connected load of 100MW and a maximum demand of 50MW , the units generated being 80 * 10^ 6 / annum ....

Conclusion

The economics of power generation consists of various factors like cost of electrical energy , tariff and different types of tariffs , integrated and isolated operation and some of the terminologies used .The cost of electrical energy is influenced by production , distribution and regulatory expenses , and also factors such as fuel prices etc. Tariff determine the rates at which electricity is supplied to consumers ranging from simple or uniform tariffs to block rate tariffs based on usage tiers . There are several factors which influence the production cost such as cost of land and equipment , depreciation equipment , interest on capital investment etc....

Frequently Asked Questions

What is base load ?...