ECONOMIC DISPATCH OF POWER PLANT CAPACITY AS UPDATED

ECONOMIC DISPATCH OF POWER PLANT CAPACITY

There are three basic types of plants in a given GRID : 

Baseload Power Plants =  These power plant compose the bulk of the capacity available to supply the given grid with continuous power for a minimum of 16 hours a day.  The Department of Energy is setting 70 percent of the Grid Capacity as Baseload Capacity.

From the economic standpoint, the baseload plant have inherent high capital cost per KW, but with minimal fuel cost, if at all eg. Hydro Power Plants., Geothermal Power Plants, Natural Gas, Coal-fired Power Plants are best examples of existing power plants in operation. 

Thermal or Bunker-C  Fuel-fed power plants which have efficient heat rates are no longer considered as Baseload power plants for the Main Grid considering the highest fuel cost they incur at Php 8.50 / Kwh.  They are considered at baseload plants for island-grid or off-grid areas.

Mid-Merit Power Plants =  These power plants compose the median power plants that operate between 8 to 12 hours a day.  They are also called load-following plants as they supply the power that is needed to account for the hourly fluctuations in Demand during the day.

From the economic standpoint, Mid-Merit Power Plants have neutral or equal proportion between Capital Costs and Fuel Cost, these are mostly Bunker-C Fuel fed plants., though efficient Diesel Power Plants are also considered.

PEAKING POWER PLANTS = The Peaking Power Plants accounts for a maximum of 6 hours of operation a day usually from dusk to midnight. The Department of Energy allocates 10 percent of the Grid requirement for Peaking Plants.

Peaking Plants should have lower capital cost per KW, though they have very high fuel costs.  This is the reason why the time of utilization is limited to 6 hours if ever.  Bunker-C / Diesel Fuel is most used in running these plants.  PUMPED STORAGE HYDRO POWER PLANTS are classified as Peaking Plants because water is pumped into the upper reservoir during graveyard shift between 11 pm to 5 am, then they are released during the peak hours in the day as needed.

LARGE  HYDRO POWER PLANTS should never be placed under the peaking plants, and conversely Fuel-fed power plants should be avoided as base-load power providers.