The incremental operating cost is calculated by differentiating 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 forandisrole="math" localid="1656144282228" .
…… (6)
Substitute the value offrom the equation (6) into equation (5).
Substitute value of into equation (6).
Calculate the incremental cost.
Substituteforinto equation (3).
Calculate the total operating cost.
Substitute for and for into equation (2).
Hence, the optimal dispatch value for generator and are and . The incremental operating cost is and the total operating cost is .