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In Distributed generation capital cost per KW is?
High (11kV)
Low (415V)
Medium (132kV)
Zero
High (11kV)
Distributed Generation (DG) units typically have a higher capital cost per kilowatt (/kW) compared to large-scale centralized power plants due to the lack of economies of scale. Centralized stations benefit from bulk purchase and infrastructure sharing, whereas small, decentralized units face higher site-specific installation and grid integration expenses.
Distributed Generation (DG) units typically have a higher capital cost per kilowatt (/kW) compared to large-scale centralized power plants due to the lack of economies of scale. Centralized stations benefit from bulk purchase and infrastructure sharing, whereas small, decentralized units face higher site-specific installation and grid integration expenses.
CostspecificтАЛ=InstalledCapacity(kW)TotalCapitalтАЛ тАФ The metric representing capital cost per kilowatt.
The principle involves 'Economies of Scale', where the average cost of production decreases as the scale of operation increases. Because DG systems are sized for localized loads (often in the range of 11kV distribution levels), they lack the massive capital efficiency of 400kV+ transmission-connected power stations, leading to a higher investment per unit of power capacity.
Distributed generation units operate at lower capacity levels, reducing the scope for cost optimization.
Higher costs per kW are often offset by reduced transmission losses and improved voltage profile.
11kV is a standard distribution voltage level where DG systems are commonly interconnected.
Reduced transmission and distribution losses
Enhanced power quality at the point of common coupling
Improved reliability through islanding capability
High initial investment per unit of power
Complexity in protection coordination due to bi-directional power flow
Maintenance overhead due to multiple dispersed locations
Rooftop Solar PV installations
Micro-grid projects in rural areas
Industrial backup power plants
DG is categorized by small-scale generation located near the load center, often connected to 11kV or low-voltage networks.
Option B (Low cost) is incorrect as small systems suffer from high per-unit setup costs due to the inability to amortize project management costs over large capacity.
A is correct тАФ Distributed generation exhibits a higher capital cost per kilowatt because it lacks the economies of scale inherent in large centralized utility power plants.
Always remember: In power systems, as voltage levels decrease, the per-unit infrastructure cost typically increases due to the requirement of more localized control and protection equipment.