# 250 MW thermal power plant

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You are required to submit a report that explains with sufficient level of detail how the results are obtained. Also, you need to submit your codes (if any). Everything should be submitted on BB in a single zipped file.

Suppose the available candidate plant is:

B: 250 MW thermal power plant (with coal fuel)

The plants specifications are provided in Table 5.1.

• Assume that, the existing generation capacity is 500 MW, consisting of two already committed type-B units (2 * 250).
• The peak load of the existing system (i.e. year 0) is 500 MW. The peak load grows by 30 MW annually, so that at the end of the 20-years period is 1100 MW.
• The discount rate is taken to be 10%.
• The salvage value (before discounting) is assumed to be (life time of equip – no. of operation yrs)/(life time of equip) * investment cost

You are required to devise a 20-year plan (i.e. determine the number of units of type B that needs to be installed in each of the next 20 years such that the total cost is minimized and all constraints are met). You are not required to solve this as a formal optimization problem. At this stage, you may attempt to find the optimal solution by making educated guesses and/or trying different reasonable combinations. In each case, report the levelized cost of energy (LCOE) in R/kWh.

1. Consider the load to be flat throughout the year at the peak load level. That is, the load in year 1 is flat 530 MW, year 2 is flat 560 MW, and so on.
2. Consider the peak load to grow as given above. However, consider the load to follow the following normalized annual LDC:

Normalized load = 1 – 0.6D, where

1. Consider the load to follow the normalized LDC defined in Part (b). Also, the required LOLP must be less than 2%. Assume that FORB = 5%.

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