8
- 9.
The results of these simulation tests, showed that the
expansion pattern postulating a new power station of 4 x 350 mw generating sets was least expansive. This indicates that the savings in capital cost (per kw installed) of
350 mw sets are more than the increase in costs needed to
provide additional reserve capacity and spinning reserve.
Further, it can be seen from the table below that the
economic order of merit of the three expansion patterns
remains the same whether fuel escalation costs are taken
into account or not.
Fuel Escalation Cost
New Power Station Capacity
Present Worth Cost
for 1981-2000
HK$M
Additional Present Worth Cost Compared With the Cheapest Pattern
Total
Capital
% of Capital
HKEM
Cost
Cost
4x200 MW
17943
3993
297
7.7
5% p.a.
4x275 MW
17799
3979
153
4.0
4x350 MW
17646
3843
1
4x200 MW
11673
3993
257
6.7
None
4x275 MW 11585
3979
169
4.4
4x350 MW 11416
3843
Accordingly it is intended that the first phase of
development of the new power station will consist of
4 x 350 my sets installed in accordance with the time
the memorandum..
scale set out in para. 8
of
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