The incremental operating cost can be calculated by differentiate the fuel cost curve of the generator.
Calculate the incremental operating cost for generator 1,
……. (3)
Calculate the incremental operating cost for generator 2,
……. (4)
The minimum cost occurs when the incremental cost of both generators becomes equal to each other.
Substitute for and for into above equation.
…… (5)
The total for and is the 1000MW.
…… (6)
Substitute the value offrom the equation (6) into equation (5).
Substitute value of into equation (6).
From the above discussion, it is clear that generator 2 is operating higher than its maximum limits that is 400MW.To obtain the optimum operation the generator 2 will operate at its maximum limit.
Therefore, optimal dispatch value of generator 1 and 2 are 600MW and 400MW respectively.
Calculate the incremental cost for generator 1.
Substitute 600MW for into equation (3).
Calculate the incremental cost for generator 2.
Substitute 400MW for into equation (4).
Calculate the total operating cost.
Substitute 600MW for and 400MW for into equation (2).
Hence the optimal dispatch value for generator and are 600MW and 400MW. The incremental operating cost for generator 1 and 2 are and respectively. The total operating cost is .