skip to main content
OSTI.GOV title logo U.S. Department of Energy
Office of Scientific and Technical Information

Title: Economies of scale, reliability and generation capacity: the economics of small versus large electricity generating units

Abstract

The type of analysis which should be conducted in the selection of the most economical electricity generation capacity expansion plan is discussed. Major points are that scale economies are probably no longer as substantial factor as they were once thought to be. At the same time, the system reliability impact of large generating units is a factor tending to offset any scale economies that might remain. When these two elements were juxtaposed in a composite analysis it was concluded that the system reliability effects of the small unit plan more than offset the somewhat higher capital cost per installed kw. This conclusion was robust to rather substantial changes in capital cost, heat rate and discount rate, the three most important variables in the calculation. It seems clear that utilities should examine the full costs of a variety of different capacity expansion plans.

Authors:
Publication Date:
Research Org.:
Los Alamos National Lab. (LANL), Los Alamos, NM (United States)
OSTI Identifier:
6473251
Report Number(s):
LA-UR-79-18; CONF-790107-3
DOE Contract Number:  
W-7405-ENG-36
Resource Type:
Conference
Resource Relation:
Conference: 3. national conference and exhibition on technology for energy conservation, Tucson, AZ, USA, 22 Jan 1979
Country of Publication:
United States
Language:
English
Subject:
20 FOSSIL-FUELED POWER PLANTS; 29 ENERGY PLANNING, POLICY AND ECONOMY; POWER GENERATION; ECONOMICS; POWER PLANTS; RELIABILITY; SIZE; CAPITAL; ECONOMIC ANALYSIS; ELECTRIC POWER; GRAPHS; TABLES; THEORETICAL DATA; DATA; DATA FORMS; INFORMATION; NUMERICAL DATA; POWER; 200106* - Fossil-Fueled Power Plants- Economics; 296001 - Energy Planning & Policy- Electric Power Generation- (-1989)

Citation Formats

Loose, V W. Economies of scale, reliability and generation capacity: the economics of small versus large electricity generating units. United States: N. p., 1979. Web.
Loose, V W. Economies of scale, reliability and generation capacity: the economics of small versus large electricity generating units. United States.
Loose, V W. Mon . "Economies of scale, reliability and generation capacity: the economics of small versus large electricity generating units". United States. https://www.osti.gov/servlets/purl/6473251.
@article{osti_6473251,
title = {Economies of scale, reliability and generation capacity: the economics of small versus large electricity generating units},
author = {Loose, V W},
abstractNote = {The type of analysis which should be conducted in the selection of the most economical electricity generation capacity expansion plan is discussed. Major points are that scale economies are probably no longer as substantial factor as they were once thought to be. At the same time, the system reliability impact of large generating units is a factor tending to offset any scale economies that might remain. When these two elements were juxtaposed in a composite analysis it was concluded that the system reliability effects of the small unit plan more than offset the somewhat higher capital cost per installed kw. This conclusion was robust to rather substantial changes in capital cost, heat rate and discount rate, the three most important variables in the calculation. It seems clear that utilities should examine the full costs of a variety of different capacity expansion plans.},
doi = {},
url = {https://www.osti.gov/biblio/6473251}, journal = {},
number = ,
volume = ,
place = {United States},
year = {1979},
month = {1}
}

Conference:
Other availability
Please see Document Availability for additional information on obtaining the full-text document. Library patrons may search WorldCat to identify libraries that hold this conference proceeding.

Save / Share: