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QUESTION 1 1.1 A factory has a Maximum demand of 1.25 MW, and an annual load factor of 46%. Because of issues of security/certainty of

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QUESTION 1 1.1 A factory has a Maximum demand of 1.25 MW, and an annual load factor of 46%. Because of issues of security/certainty of supply, management must decide whether to be supplied with electric power from the Public Utility, or from diesel engine generator, run by themselves. You are an engineer at this factory. Use the information provided, and recommend the supply to be used. Public utility tariff: R378-00 per kW, Maximum Demand, (taken over the year) and R1.12 per unit plus a monthly service charge of R800-00 Oil engine generator: Capital cost: R1 200 000-00 Fuel cost: R12-00 per kilogram Fuel consumption: 0.3 kg/unit Repair & Maintenance: 0.73 cents per unit generated Interest & Depreciation: 12% per year Annual wages: R25 000-00 (14) QUESTION 1 1.1 A factory has a Maximum demand of 1.25 MW, and an annual load factor of 46%. Because of issues of security/certainty of supply, management must decide whether to be supplied with electric power from the Public Utility, or from diesel engine generator, run by themselves. You are an engineer at this factory. Use the information provided, and recommend the supply to be used. Public utility tariff: R378-00 per kW, Maximum Demand, (taken over the year) and R1.12 per unit plus a monthly service charge of R800-00 Oil engine generator: Capital cost: R1 200 000-00 Fuel cost: R12-00 per kilogram Fuel consumption: 0.3 kg/unit Repair & Maintenance: 0.73 cents per unit generated Interest & Depreciation: 12% per year Annual wages: R25 000-00 (14)

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