 x kW - maximum demand 
y -annual load factor at which cost for both stations are same 
Units generated per annum = 8760xy kWh 

Installed capacity of steam plant = 1.25x kW 
Installed capacity of hydro plant = 1.33x kW 

STEAM STATION: 
Capital cost = Rs. 1500x 
Interest and depreciation = Rs. 135x 
Running cost/annum = Rs 438xy 
Overall cost/kWh = Rs (135x+438xy)/(8760xy) 

HYDRO STATION: 
Capital cost = Rs. 2793x 
Interest and depreciation = Rs. 209x 
Running cost/annum = Rs 280xy 
Overall cost/kWh = Rs (209x+280xy)/(8760xy) 

Equating operating cost, Load factor y = 47.46 % 
Max demand = x = 9.62*10^3 kW 
Cost of generation = Rs. 3298.86*10^3 


