The incremental operating cost can be calculated by differentiate the fuel cost curve of the generator.
Calculate the incremental operating cost for generator 1,
……. (4)
Calculate the incremental operating cost for generator 2,
……. (5)
Calculate the marginal cost for the unit 1,
Substitute for and 1 for into equation (2).
Calculate the marginal cost for the unit 2,
Substitute for and 0.95 for into equation (2).
The marginal cost of both the unit should be equal for the economic dispatch.
Substitute for and for into above equation.
……. (6)
The total for and is the 1000MW.
…… (7)
Substitute the value of from the equation (7) into equation (6).
Substitute value of into equation (7).
Calculate the incremental cost for generator 1.
Substitute for into equation (4).
Calculate the incremental cost for generator 2.
Substitute for into equation (5).
Calculate the total operating cost.
Substitute 423.36MW for and 576.64MW for into equation (2).
Hence, the optimal dispatch value for generator and are 423.36MW and 576.64MW. The incremental operating cost for generator 1 and 2 are and respectively. The total operating cost is .