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Calculate the generation cost in two part form

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The capital cost of a hydro-power station of 50 MW capacity is Rs 1,000 per kW. The annual depreciation charges are 10% of the capital cost. A royalty of Re 1 per kW per year and Re 0.01 per kWh generated is to be paid for using the river water for generation of power.

The maximum demand on the power station is 40 MW and annual load factor is 60%. Annual cost of salaries, maintenance charges etc. is Rs 7,00,000. If 20% of this expense is also chargeable as fixed charges, calculate the generation cost in two part form.

Reference no: EM131247920

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