ECONOMIC MODELING OF POWER SYSTEM BASED ON REAL COST OF ENERGY DELIVERY AT VARIOUS CONSUMPTION POINTS

the current methods for cost benefit analysis of any power project is based on the assumption of fixed tariff for all the users. this assumption basically implies that there is no difference in the cost of generating energy for all points in the network, but in actually the cost of generating one Kwh of energy vastly differs from one point to another, simply due to different generating cost of various power stations and also different losses of transmission lines in the network. Hence for feasibility and cost-benefit analyses it is more realistic to use the per unit value of energy on " real cost i.e. generation and transmission cost for cache point in the network. this article emphasizes the advantages of the above mentioned mentioned methods for feasibility studies and cost-benefit analysis. The article which was developed in our Power Planning Department also represents an in-house computer program for economic modeling based on this new approach.