Usually Drango generates only during the peak period of 8 am to 8 pm. And you may
Question:
Usually Drango generates only during the peak period of 8 am to 8 pm. And you may assume that the electricity prices given relate to that period. Drango runs at an efficiency of 60% in conversion of energy from gas to electricity. The result is that when operating normally Drango consumes 1166.6667 MWh of gas in each hour. Drango has an existing contract for gas supply at 4.3 pence per kWh for an average of 8,000 MWh per day, with the requirement to take that amount when averaged over a month. Additional gas required will be purchased at the market price. During the period in question the carbon costs were 40 per tonne, and Drango operates with 500g of carbon emissions per kWh of gas used. In addition to fuel costs and carbon emissions costs, the plant costs 50,000 GBP per day to run in operating and financing costs. Estimate the average daily profit, assuming that market prices for gas and electricity are the same as the data provided.
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese