Power Generation

Power Electricity

“Electricity is often called wonderful, beautiful; but ….the beauty of electricity is that it is under law, and that the taught intellect can even govern it largely. The human mind is placed above, and not beneath it,…. for by enabling the mind to apply the natural power through law, it conveys the gifts of God to man” – Micheal Faraday, the 19th century discoverer of electromagnetic laws.

The fundamental principles of electricity generation discovered during the early ninteenth century by Michael Faraday are still in use today: electricity is generated by the movement of a loop of conducting wire between the poles of a magnet. Using this principal, electrical power is usually generated by electro-mechanical generators which are run by steam produced from fossil fuel (Oil, Gas, Coal) combustion, or the heat released from nuclear reactions; or from other sources such as kinetic energy extracted from wind or flowing water.

The world market share for various power generation technologies is dominated by the fossil fuels namely Oil (33%), Coal (30%) and Gas (24%). Hydro forms around 6.5%, Nuclear about 5 % while renewables such as wind and solar form around 1.5%, a small number, but is growing at the fastest rate among all technologies. The reason is that the age of fossil fuels that began in the 19th century, is coming to its end as they are non-renewable and exhaustive. Population increase has put tremendous loads on these reserves globally. The ‘production to reserve’ ratio is declining. Although demand for electricity grows with great rapidity as a nation modernizes and its economy expands, the environmental concerns with electricity generation and increasingly unacceptable carbon emissions have also led to an increased focus on sustainable development and generation from renewable sources, in particular from solar, wind and hydropower.

The selection of electricity production modes and their economic viability varies in accordance with demand and region. Hydroelectric plants, nuclear power plants, thermal power plants and renewable sources have their own pros and cons, and selection is based upon the local power requirement and the fluctuations in demand. Generally speaking, the running costs of renewable power will be much cheaper in comparison to the fossil fuel driven power generation as their source fuel (water, wind, Sun etc) cost nothing. The time to set up the plants also varies depending upon the capacity requirements, but generally wind generation requires the least amount of time (within a year) to get the operations up and running.  Similarly in terms of capacity capabilities, the large scale power plants (400 MW and above) are generally driven by the fossil fuel technologies, but rapid strides and research is being carried out to replace this with renewable sources. When it comes to comparing the costs of generation technologies, the appropriate comparison takes into account load factor, identifies risks associated with the costs/kWh for each technology and then performs a net present value analysis on those technologies with risks that the company feels comfortable managing.

OliveLit Businesses have industry experts with international Ivy league academic as well as FTSE-100 corporate experience and we help anorganization plan and implement a power generation strategic business plan / feasibility with the most modern digital control technologies and business process techniques. In case of an existing plant, we help reengineer its infrastructure, including the addition of the digital layer and business process transformation, necessary to capitalize on the investments in your given technology, resulting in improvement in your organization’s operational and financial efficiencies.