Generation Cost of Electrical Power in Coal Based Thermal Power Plant

Hi Friends,

In earlier posts, we have already discussed about the Technological Advancements in Electrical Power Generation System with regard to overall thermal efficiency and other related technical issues of Thermal Power Plants. As production of aluminium metal in Aluminium Smelters is a power intensive metallurgical process wherein the cost component of electrical power in production cost of aluminium metal ranges from 50 to 55%. Thus, the unit price of electrical power becomes the key factor for execution and operation of Aluminium Smelters. As we all are well aware that shutdown and permanent closure of many Aluminium Smelters in the World were forced in the past mainly due to high power cost.  Thus, it becomes essential to judiciously work out the unit rate of electrical power for the specific Aluminium Smelter project. In present post, we will broadly discuss the methodology to estimate the generation cost of electrical power in coal based  Thermal Power Plants clearly stating the major assumptions as outlined here under-

Major assumptions include the capital investment, specific consumption factors, overall thermal efficiency figure applicable for considered type of power plant and landed price of input materials. Here, the methodology have elaborated clearly. The power generation cost in coal based Thermal Power Plant works out to US$ 43.12 per Mega watt hour of electrical power. The above derivation clearly reveals that the cost of input fuel accounts for over 56% in generation cost of power. Thus, fuel price is the key contributing factor in improving the profitability of Thermal power plant and thereby Aluminium smelter as well.

Trust, the methodology has been clearly described for easy understanding and can be used for any capacity simply by replacing the basic assumptions with the new figure.Please put your views / suggestions / remarks / comments, if any.


If you like this article, please press your rating as +1  appearing at the footer of this page.
Thanks and regards.


Kunwar Rajendra