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A factory, having a Maximum demand of 1.22MW, and an annual load factor of 56%, must decide whether to be supplied with

Posted: Sun May 15, 2022 2:27 pm
by answerhappygod
A factory, having a Maximum demand of 1.22MW, and an annual

load factor of 56%, must decide whether to be supplied with

electric power from the Public Utility, or from diesel engine

generator, run by themselves. You are an engineer at this factory.

Use the information provided and recommend the supply to be

used.

Public utility tariff:

R312-00 per kW, Maximum Demand, (taken over the year) and 95 cents

per unit

plus, a monthly service charge of R800-00

Oil engine generator:

Capital cost: R1 200 000-00

Fuel cost: R12-00 per kilogram

Fuel consumption: 0.3 kg/unit

Repair & Maintenance: 0.73 cents per unit generated

Interest & Depreciation: 12% per year

Annual wages: R25 000-00