What is merit order in power plant. What is fixed charge and variable charge..what is the heat rate of the plant..how is efficient calculated.

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Accepted Answer

Merit order is the ranking of power plants based on their cost of production. Fixed charge is the cost of capital investment while variable charge is the cost of fuel and maintenance.

Merit order is used to determine which power plants will be dispatched first based on their cost of production.
Fixed charge is the cost of capital investment in the power plant, including the cost of building and maintaining the plant.
Variable charge is the cost of fuel and maintenance required to operate the power plant.
Heat rate is the amount of fuel required to produce a unit of electricity.
Efficiency is calculated by dividing the output of the power plant by the input of fuel or energy.
A power plant with a lower heat rate and higher efficiency will have a lower variable charge and therefore a higher merit order ranking.

What is merit order in power plant. What is fixed charge and variable charge..what is the heat rate of the plant..how is efficient calculated.

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