Question

Problem 4 A 700 MW coal fired plant has a capacity factor of 80% for the year 2015 (not a leap year). The heat rate of the unit is 10,000 BTU/kwh. The average cost of coal is $2.60 per MBTU. Calculate the fuel cost for the unit in 2015. [20 points)

Answer 1

Given data :

Plant capacity = 700 MW

Plant capacity factor = 80% = 0.8

Heat rate of the plant = 10,000 BTU/kWh

Heat rate of the plant = 10,000 x 10-6 M BTU/kWh

Heat rate of the plant = 0.01 MBTU/kWh

Average cost of coal per MBTU = $2.6

Since 2015 is not a leap year,

Total number of hours = Number of days x 24

Total number of hours = 365 x 24

Total number of hours = 8,760

We know that,

Annual output of plant Plant capacity factor = 7 Plant capacity X Total number of hours

Annual output of plant = Plant capacity x Total number of hours x Plant capacity factor

→ Annual output of plant = 700 x 106 x 8,760 X 0.8

Annual output of plant = 4, 905, 600 MWh

We know that,

Total annual fuel required = Annual output of plant x Heat rate of the plant

Total annual fuel required = 4,905, 600 MWh x 0.01 MBTU/kWh

Total annual fuel required = 49,056, 000 MBTU

We know that,

Total annual fuel cost = Total annual fuel required in MBTU X average cost of coal per MBTU

Total annual fuel cost = 49,056, 000 < $2.6

Total annual fuel cost = $127, 545, 600

:. Fuel cost for the unit in 2015 is $127.5456 million.