Mechanical Engineering (Coursework Sample)

Base Line Analysis By: Institution: Base line analysis homework 1 Importance of baseline analysis include: * It aids in focusing efforts on only the most important areas. * It helps in defining potential energy savings. * The analysis helps in determining the accurate avoided energy costs used for calculating cost saving. 2 Electricity costs are regulated so as to ensure; * Reliability of service with adequate supply of electricity * Financial transparency and security * Reasonable pricing * Market is safeguarded against manipulation. 3 Historically electrical energy supply is regulated, and the government in many states is the sole provider of this energy. However, in the past few years this supply process is being opened up allowing competition from other utility providers. This gives the customers the power to choose whom they purchase this service from. Deregulation is important and offers the following advantages. Competition thus price protection, more services and products are made available, price stabilization and gives the customers freedom of choice. 4 Real time billing is being used by utility companies and their customers for real time payment of their services. The utility companies reduce their customer's cost by minimizing the time between electricity consumption and payment. 5 Components of electricity bills in non-real structures are: * An energy charge * A demand charge * A service charge and, * Power factor charge. 6 On load peak terms, there are three methods of pricing based on the time of use. Off-peak: this is when the electricity demand is lowest. The prices at this time are slightly lower. Mid-peak: this is when the electricity energy demand is moderate. These periods are generally during the day but not including the busiest times of the day. Prices are fixed moderately at this periods. On-peak: this is the period when the electricity demand is at its peak, highest. This includes the busiest times of the day and when households and most industries use electric power. Generally prices are directly proportional to demand. 7 Electricity cannot be stored unless, in batteries which are insufficient, utility energy generating companies continuously vary the amount of electricity produced to meet fluctuating demand in different seasons. Thus a utility company must purchase and produce enough energy to meet peak demand. They must maintain adequate generating, transmission and distribution to meet the load demand including a safety allowance especially on peak periods. 8 Low power factor is inefficient and expensive. Utility companies charge large amounts of cash to industrial customers who do not regulate the power factor to be as close to unity. Low power factor increases system losses by increasing current flows and affecting voltage drops thus reducing electrical system distribution capacity. 9 In general service primary rate, the customer owns the transformer. The transformer has fixed services with power factor charges. Due to the variable fuel cost the energy charge varies slightly on each month. 10 Demand = 1600kW, Power factor = 0.88 Solution KVAr = kW* Hence, kVAr = 1600 * tan 28.357 = 863.5 kVAR Apparent Power = 1000 kVA Demand = 930 kW Solution kVAr= = 367.559 kVAr = Power factor = 0.93 Demand = 1000 kW Energy use = 250000kWh Solution Avoided Cost on Demand (ACD) is given by ACD = B1 (kWh / kW) * (E1 $ / kWh – E2 $ / kWh) + B2 (kWh / kW) * (E2 $ / kWh – E3 $/ kWh) ACD = 200 kWh / kW * ($ 0.04 / kWh - $ 0.03 / kWh) + 100 kWh / kW * ($ 0.03 / kWh - $ 0.02 / kWh) = 2 + 0.06 = $ 2.06 / kW. Energy = 600,000 kWh Demand = 900 kW Power factor = 0.85 Solution Energy charge, $ 0.04 / kWh for the first 200 kWh / kW * 900 kW = 18000 kWh $ 0.03 / kWh for the first 100 kWh / kW * 900 = 9000 kWh. Demand charge, Additional demand charge, demand penalty = 52.94 kW Power factor charge, Power factor charge = demand penalty * $ 12 / kW – month = 52.94 kW * $ 12 / kW = $ 635.28 / month Energy = 500,000 kWh Demand = 1,200 kW Power factor = 0.92 Solution. Service charge is $ 100 / month Energy charge, $ 0.03 / kWh for the first 250 kWh / kW * 1000 kW = 250000 kWh $ 0.01 / kWh for all additional kWh. Demand charge, Calculating the demand penalty, 1000 * kW = 86.9565 kW Power factor charge = demand penalty * $ 100 / month = 86.9565 * $ 100 / month = $ 8695.65 / month Solution Primary rate, Service = $ 95 * 12 = $ 1140 per year Demand charges, $ 13.80 / kW - month * 12000 kW * 12 = $198,720 Energy charges, $ 0.021 / kW * 500,000 kWh / month * 12 = $ 126, 000 Total charges on primary rate under consideration is; $ (1140 + 198,720 + 126,000) = $ 325,860 On secondary rate; Services = $ 16 * 12 = $ 192 Demand charges, $ 14.14 / kW – month * 1200 kW * 12 = $ 203, 616 Energy charges, [($ 0.03 / kWh * 125,000 kWh) + ($ 0.025 / kWh * 325,000)] * 12 = $ 11,875 * 12 = $ 142,500 Total charges on secondary rate, $ (192 + 203,616 + 142,500) = $ 346,308 Annual cost saving, Primary rate + $ 20,000 (purchasing cost) $ 325,860 + 20,000 = $ 345,860 Annual savings = 346,308 – 34...