Problem Set 3

20 Marks

1) Based on class discussions and readings, please describe the following in your own words (with
regards to power generation) --------- total 5 Marks

a. Intermittency (1)
Intermittency refers to the variations in electricity supply caused by the inconsistent
energy production of certain sources within the grid system

b. Dispatchability (1)
The degree to which an energy resource can be depended upon to provide electricity
when needed is referred to as its dispatchability.

c. Identify one dispatchable renewable generation technology (1)

Hydropower

d. Identify two intermittent renewable generation technologies (1)

Solar and Wind

e. What is the duck curve (in other words describe the problem) (1)

It represents the variation between the electricity required and the amount of solar
energy generated during the day.

2) Refer to the NEPRA State of Industry report (uploaded on LMS). I highly recommend reading the
first 40 pages word by word as you will understand everything we have talked about so far and
the issues. The following questions are from Section 2.2 “Issues in the Generation Sector” ------
Total 7 marks

a. What is the cost of violating the Economic Merit Order? (list down with PKR
repercussions) -----1
• The operation of costly power plants, amounting to Rs 19332 million, was
necessitated by the shortage of RLNG.
• System limitations resulted in a financial impact of Rs 3670 million.
• Inefficient utilization of power plants resulted in a cost of Rs 260 million.

b. 2.2.2 explains Part Load Adjustment Charges (PLAC). Briefly explain (in a sentence) what
is PLAC and what was the financial cost calculated for this year? --------1

The charges that power plants can recover for operating below their full capacity even
when there is demand, resulted in a financial cost of Rs 41.7 billion as calculated for the
current year.
c. In 2.2.5 “Take or Pay” contracts are explained, which are problematic. What are Take or
Pay contracts and why are they problematic? Secondly, during FY2021-22 what %
utilization was recorded for base load “Take or Pay” thermal power plants --------1

When operating under Take or Pay agreements, power plants must be compensated for
their available generating capacity, whether or not it is utilized. This can create
significant financial strain on the power sector and result in higher prices for consumers.
In the case of base load thermal power plants under Take or Pay contracts, only 46% of
their capacity was utilized.

d. Read 2.2.6. What was the peak demand for Pakistan in both Summers and Winters? (in
MW) (Part 1); Part 2 of the question: what is the financial implication when you
compare this with the total installed capacity (not in number, but as a concept given the
contracts we have) --------1

Part 1: During the summer season, the maximum power demand reached 28,253 MW,
whereas in the winter season, it decreased to 15,962 MW at its peak.

Part 2: The total power generation capacity in the system is significantly higher than the
demand, leading to higher tariffs for consumers.

e. 2.2.7 talks about distributed generation and its benefits. What is the benefit of
distributed generation? Which particular distributed generation source is mentioned as
available but not utilized? What is the reason cited for not utilizing? [three parts to this
question; read the entire section] --------------- 2

Part 1: The availability of inexpensive electricity presents an opportunity for DISCOS to

make purchases at a lower cost, leading to reduced electricity tariffs for end consumers.
“Take and pay” basis

Part 2: Power plants that generate electricity using bagasse to meet electricity need

Part 3: DISCOS are declining to purchase such electricity due to non-commercial

approach

f. 2.2.15 talks about costly power generation by KE; what alternative KE could have done
and why this couldn’t happen? --------------1

Due to the absence of an agreement between KE and CPPAG, KE was unable to obtain
electricity from the underutilized power plants within the CPPAG system.
3) Look at figure 1 at the end of this document which is taken from the Week 5 reading “5min
guide to electricity storage” by Arup uploaded on LMS ---------- Total 3 Marks
a. Name one storage technology that has a storage capacity of 1MW which discharges its
power within minutes (1)
Sodium Nickel Chloride battery

b. Name one storage technology that has a storage capacity of 1MW which discharges its
power within hours (1)
Flow batteries

c. Provide three benefits of energy storage (1)

• Lowers expenses
• Enhances reliability
• Boosts sustainability by emitting zero greenhouse gases.

4) Describe Distributed Generation and list two benefits on the entire energy system/or
stakeholders (2)

Distributed Generation technologies generate power on a small scale and in proximity to the
area where electricity is needed. This approach is both reliable and cost effective, while also
providing the added benefit of producing power in close proximity to the end user.

5) Reference to the SunEdison reading (for week 6), how did SunEdison revolutionize the solar
market? (what was new about its business model?) (3 Marks)

The business model involved providing customers with free solar panel installation, rather than
requiring them to pay upfront costs. The energy generated by the solar panels was then sold to
the customers through long-term Power Purchase Agreements (PPAs) at a fixed price.
Figure 1