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.
role="math" localid="1656146842235" …… (5)
The total forandis the.
…… (6)
Substitute the value of from 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.To obtain the optimum operation the generator 2 will operate at its maximum limit.
Therefore, optimal dispatch value of generator 1 and 2 are and respectively.
Calculate the incremental cost for generator 1.
Substituteforinto equation (3).
Calculate the incremental cost for generator 2.
Substitute forinto equation (4).
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 for generator 1 and 2 are and respectively. The total operating cost is .