Cost of generation

ECONOMIC DISPATCH
INCLUDING GENERATOR LIMITS
 ECONOMIC DISPATCH CONSIDERING
LOSSES ON THE TRANSMISSIOIN LINE
 When transmission distances are
very small and load density is very
high, transmission losses may be
neglected and the optimal dispatch
of generation is achieved with all
plants operating at equal
incremental production cost.

 However, in a large interconnected

network where power is
transmitted over long distances
with low load density areas,
transmission losses are a major
factor and affect the optimum
dispatch of generation.
 PROBLEM FORMULATION
The total losses on the network are a contribution of all the generating units.
The objective function remains the same but the constraint function is
modified to include a function of Losses
N
L  P Loss  P i  0.......... .......... .......... (1.1)
i 1

The overall lagrangian function

N
 N

( P1 , P 2 ,.....P N ,  )   C i ( P i )    L  P Loss  P i .......................(1.2)
i 1  i 1 
Determining the partial derivatives
  N
 N

( P1 , P 2 ,..... P N ,  )   C i ( P i )    L  P Loss  P i .......... .....(1.3)
( P i ,  )  i 1  i 1 
Leading to
 C i P Loss
     0............................(1.4)
P i P i P i

C i  P Loss  C i  P Loss 
  1    0    1  ..........................(1.5)
P i  P i  P i  P i 
1 C i
   ......................................................(1.6)
 P Loss  P i
1  
 P i 
 Therefore
C i 1
Li P i  .................................(1.7) where; L i 
 P Loss 
1  
 P i 
The above derivation leads to a factor Li called a Penalty Factor of the plant.
Two conclusions can be drawn;
The effect of transmission losses introduces a Penalty Factor that depends on the location
of the plant
The minimum cost is obtained when the marginal cost of each plant is multiplied by its
Penalty Factor is the same for all plants