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 forandforinto equation (2).
Calculate the marginal cost for the unit 2,
Substitutefor andforinto equation (2).
The marginal cost of both the unit should be equal for the economic dispatch.
Substituteforand forinto above equation.
……. (6)
The total forandis the .
…… (7)
Substitute the value offrom the equation (7) into equation (6).
Substitute value ofinto equation (7).
Calculate the incremental cost for generator 1.
Substituteforinto equation (4).
Calculate the incremental cost for generator 2.
Substitute for into equation (5).
Calculate the total operating cost.
Substitute forandforinto 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 .