If the total cost of electrical energy generated = fixed cost(A) + semi-fixed cost(B) + running cost(C), then 'B' is proportional to the __________.

The semi-fixed cost (B) in the total cost of electrical energy generation is proportional to the maximum demand (installed capacity or peak load demand).

Explanation

• Fixed Cost (A): This includes expenses that do not change with energy production, such as land, buildings, and major infrastructure.
• Semi-Fixed Cost (B): These costs are partially dependent on the system's capacity and include expenses like maintenance of equipment, depreciation, salaries, and other overheads that vary with the maximum demand (or peak load capacity).
• Running Cost (C): This depends on actual energy generation and includes fuel costs, consumables, and variable operational expenses.

Since semi-fixed costs (B) do not vary directly with energy generation but rather with the system's capacity to handle peak demand, they are proportional to the maximum demand (installed or peak load capacity) of the power plant.