Question

please make sure the answer is clear and correct

If the electrical demand is 1,000 kW and electrical energy use is 250,000 kWh, calculate the adjustment to the avoided cost of demand for the following energy use block structure: Energy: 4. $0.04/kWh for the first 200 kWh/kW 0.03/kWh for the next 100 kWh/kW $0.02 /kWh for all additional kWh

Answer 1

Given that, Electrical demand = 1000kw Electrical energy used = 2,50,000 kwh Avoided cost of demand = ? Given block structure, (i) $ 0.04/kwh for the first 200 kwh/kw (ii)$0.03/kwh for the next 100 kwh/kw (iii) $ 0.02/kwh for all additional kwh. Avoided cost: It is necessarily the marginal cost of public utility to produce one more unit of power. Where as Qualifying facilities reduce the utility's need to produce this additional power them selves, the price utilities pay for qualifying facilities power has been set to the avoided cost. rightarrow Avoided cost of Demand is given by, ACD = B_i[(kwh/kw)*(E_i $/kwh - E_ii $/kwh)] + B_ii[(E_ii $/kwh - E_iii $/kwh) * (kwh/kw)] Where, B_i - B_ii - Block structures of (i) & (ii) E_i, E_ii, E_iii - Energy of (i), (ii), (iii) \r\n * From given data, we have = 1000 kw times 200 kwh/kw = 2,00,000 kwh Here the application of adjustment is not possible since the energy use uis to small to benefit from the chance in size of the base block.