Economic Load Dispatch

W. D. Prasad
Problem of Optimum Dispatch Formulation

Assume the following variables;

𝑃𝐷 = total demand on the station
𝑛 = number of generating units

• The optimization problem is to allocate the total load 𝑃𝐷 among

these ‘𝑛’ units in an optimal way to reduce the overall cost of
generation.

• Let, 𝑃𝐺1 , 𝑃𝐺2 , ⋯ , 𝑃𝐺𝑛 be the power generated by each individual unit
to supply a load demand of 𝑃𝐷 .
Incremental Fuel Cost (IFC) Curve
• The IFC is defined as the ratio of a small change in the input to the
corresponding small change in the output.
∆ 𝐼𝑛𝑝𝑢𝑡 ∆𝐹
𝐼𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝐹𝑢𝑒𝑙 𝐶𝑜𝑠𝑡 = =
∆ 𝑂𝑢𝑡𝑝𝑢𝑡 ∆𝑃𝐺
𝑑 𝐼𝑛𝑝𝑢𝑡 𝑅𝑠
𝐼𝐹𝐶 = 𝑀𝑊ℎ
𝑑 𝑂𝑢𝑡𝑝𝑢𝑡
Incremental Fuel Cost (IFC) Curve
• The cost curve is given by;
1
𝐶𝑖 = 𝑎𝑖 𝑃2 𝐺𝑖 + 𝑏𝑖 𝑃𝐺𝑖 + 𝑑𝑖
2
• Incremental fuel cost is given by;
𝑑𝐶𝑖
𝐼𝐶 𝑖 = = 𝑎𝑖 𝑃𝐺𝑖 + 𝑏𝑖 𝑖 = 1, 2, ⋯ , 𝑛
𝑑𝑃𝐺𝑖

• Fuel cost is the major component and the remaining costs such as
maintenance, salaries, etc will be of very small percentage of fuel
cost.
• IFC is very significant in the economic loading of a generating unit.
• The incremental production cost of a given unit is made up of the IFC
plus the incremental cost of items such as labor, supplies,
maintenance, and water.
• In many systems, for purposes of scheduling generation, the
incremental production cost is assumed to be equal to the IFC.
Optimization Problem Neglecting Transmission Loss
• An optimization problem consists of an objective function and a set
of constraints.
• Objective function: minimize overall cost of the production of power
generation.
• Consider a set of thermal units and assume 𝐶𝑖 as the cost of power
generation of the 𝑖𝑡ℎ unit.
• Total cost:
𝑛

𝐶= 𝐶𝑖
𝑖=1
• The generation cost depends on the amount of real power
generated.
𝑛

𝐶= 𝐶𝑖 𝑃𝐺𝑖
𝑖=1
Constraint Equations
• Equality constraints
Sum of real power generation of all the units must be equal to
the total demand on the system.
𝑃𝐷 = 𝑛𝑖=1 𝑃𝐺𝑖
𝑛

𝑃𝐷 − 𝑃𝐺𝑖 = 0
𝑖=1
• Inequality constraints
• Output power constraints:
𝑄𝐺𝑖,𝑚𝑖𝑛 ≤ 𝑄𝐺𝑖 ≤ 𝑄𝐺𝑖,𝑚𝑎𝑥 𝑃𝐺𝑖,𝑚𝑖𝑛 ≤ 𝑃𝐺𝑖 ≤ 𝑃𝐺𝑖,𝑚𝑎𝑥

2 2 2
𝑃𝐺𝑖 + 𝑄𝐺𝑖 ≤ 𝑆𝑖,𝑟𝑎𝑡𝑒𝑑
• Voltage magnitude and phase angle constraints:
𝑉𝑖,𝑚𝑖𝑛 ≤ 𝑉𝑖 ≤ 𝑉𝑖,𝑚𝑎𝑥
𝛿𝑖,𝑚𝑖𝑛 ≤ 𝛿𝑖 ≤ 𝛿𝑖,𝑚𝑎𝑥
Optimal Allocation of Total Load Among Different
Units
• Consider a power station having ‘n’ number of units.
• Assume that each unit does not violate the inequality constraints and
let the transmission losses be neglected.

• Problem:
The cost of production of electrical energy, 𝐶 = 𝑛𝑖=1 𝐶𝑖 𝑃𝐺𝑖
must be minimized subjected to the equality constraint
𝑃𝐷 = 𝑛𝑖=1 𝑃𝐺𝑖 .

𝐶𝑖 = cost function of the 𝑖𝑡ℎ unit

𝑃𝐺𝑖 = real power output of the 𝑖𝑡ℎ unit

• How to solve this optimization problem?

Method of Lagrangian Multipliers
• Define a new objective function:
𝑛

𝐶′ = 𝐶 − 𝜆 𝑃𝐺𝑖 − 𝑃𝐷
𝑖=1
𝑛

min 𝐶′ = min 𝐶 − 𝜆 𝑃𝐺𝑖 − 𝑃𝐷

𝑖=1
• Condition for optimality:
𝜕𝐶′
=0
𝜕𝑃𝐺𝑖
𝜕𝐶′ 𝜕𝐶 𝜕𝐶
= −𝜆 =0→ =𝜆
𝜕𝑃𝐺𝑖 𝜕𝑃𝐺𝑖 𝜕𝑃𝐺𝑖
𝜕𝐶 𝜕𝐶 𝜕𝐶
= =⋯=
𝜕𝑃𝐺1 𝜕𝑃𝐺2 𝜕𝑃𝐺𝑛
Method of Lagrangian Multipliers
• Expression 𝐶 is in separable form:
𝜕𝐶 𝜕𝐶1
=
𝜕𝑃𝐺1 𝜕𝑃𝐺1
𝜕𝐶 𝜕𝐶2
=
𝜕𝑃𝐺2 𝜕𝑃𝐺2
⋮
𝜕𝐶 𝜕𝐶𝑛
=
𝜕𝑃𝐺𝑛 𝜕𝑃𝐺𝑛
𝜕𝐶1 𝜕𝐶2 𝜕𝐶𝑛
= =⋯= =𝜆
𝜕𝑃𝐺1 𝜕𝑃𝐺2 𝜕𝑃𝐺𝑛

• Each of these derivatives represents the individual incremental cost

of every unit. Hence, the condition for the optimal allocation of the
total load among the various units, when neglecting the
transmission losses, is that the incremental costs of the individual
units are equal. It a called a co-ordination equation.
Computational Methods

• Different methods used to solve this optimization problem:

• Analytical method
• Graphical method
• Use of computer software

• Analytical Method
a) Choose a particular value for 𝜆, i. e. λ = 𝑎𝑖 𝑃𝐺𝑖 + 𝑏𝑖 .
𝜆−𝑏𝑖
b) Compute, 𝑃𝐺𝑖 = , for the 𝑖𝑡ℎ unit.
𝑎𝑖
c) Find total real-power generation, 𝑛𝑖=1 𝑃𝐺𝑖 , 𝑖 = 1, 2, ⋯ , 𝑛
d) Repeat the procedure for different values of 𝜆.
e) Plot a graph between total power generation and 𝜆.
f) For a given power demand 𝑃𝐷 , estimate the value of 𝜆.
g) This value of 𝜆 will be the optimum solution for the
optimization problem.
Computational Methods

• Use of Computer Software

λ = 𝐼𝐶 𝑖 = 𝑎𝑖 𝑃𝐺𝑖 + 𝑏𝑖
𝜆 − 𝑏𝑖 𝜆 𝑏𝑖
𝑃𝐺𝑖 = = −
𝑎𝑖 𝑎𝑖 𝑎𝑖
𝑏𝑖 1
Define, 𝛼𝑖 = − , 𝛽𝑖 =
𝑎𝑖 𝑎𝑖
2
𝑃𝐺𝑖 = 𝛼𝑖 + 𝛽𝑖 𝐼𝐶 𝑖 + 𝛾𝑖 𝐼𝐶 𝑖 +⋯ , 𝑖 = 1, 2, ⋯

• The number of terms included depends on the degree of accuracy

required and coefficients 𝛼𝑖 , 𝛽𝑖 , 𝛾𝑖 are to be taken as input.
• Algorithm:
a) Guess the initial value of 𝜆0 with the use of cost-curve
equations.
0 0 0 0 2
b) Calculate 𝑃 𝐺𝑖 as per 𝑃 𝐺𝑖 = 𝛼𝑖 + 𝛽𝑖 𝜆 𝑖 + 𝛾𝑖 𝜆 𝑖 + ⋯
c) Calculate 𝑛𝑖=1 𝑃0 𝐺𝑖
Computational Methods

• Use of Computer Software

d) Check whether, 𝑛𝑖=1 𝑃0 𝐺𝑖 = 𝑃𝐷 .
𝑛

𝑃0 𝐺𝑖 − 𝑃𝐷 ≤ 𝜖, 𝑎 𝑡𝑜𝑙𝑒𝑟𝑎𝑛𝑐𝑒 𝑣𝑎𝑙𝑢𝑒
𝑖=1
𝑛 0
e) If, 𝑖=1 𝑃 𝐺𝑖< 𝑃𝐷
Set a new value for 𝜆′ = 𝜆0 + Δ𝜆
Repeat from step (b) till the tolerance value is satisfied.

f) If, 𝑛𝑖=1 𝑃0 𝐺𝑖 > 𝑃𝐷

Set a new value for 𝜆′ = 𝜆0 − Δ𝜆
Repeat from step (b) till the tolerance value is satisfied.

g) Stop.
Optimum Generation Scheduling with Transmission
Losses
Mathematical Formulation:

Objective function:
𝑛

𝐶= 𝐶𝑖 𝑃𝐺𝑖
𝑖=1
Constraints:
𝑛

𝐶𝑖 𝑃𝐺𝑖 − 𝑃𝐿 − 𝑃𝐷 = 0
𝑖=1
𝑃𝐿 = total losses

Inequality constraints:
𝑃𝐺𝑖,𝑚𝑖𝑛 ≤ 𝑃𝐺𝑖 ≤ 𝑃𝐺𝑖,𝑚𝑎𝑥 ; 𝑄𝐺𝑖,𝑚𝑖𝑛 ≤ 𝑄𝐺𝑖 ≤ 𝑄𝐺𝑖,𝑚𝑎𝑥
𝑉𝑖,𝑚𝑖𝑛 ≤ 𝑉𝑖 ≤ 𝑉𝑖,𝑚𝑎𝑥
Optimum Solution
𝑛 𝑛

𝐶′ = 𝐶𝑖 𝑃𝐺𝑖 − 𝜆 𝑃𝐺𝑖 − 𝑃𝐿 − 𝑃𝐷
𝑖=1 𝑖=1
Condition for optimality:
𝜕𝐶′
= 0, 𝑖 = 1, 2, ⋯ , 𝑛
𝜕𝑃𝐺𝑖
𝜕𝐶′ 𝜕𝐶𝑖 𝜕𝑃𝐿 𝜕𝐶𝑖 𝜕𝑃𝐿
= −𝜆 1− =0→ =𝜆 1−
𝜕𝑃𝐺𝑖 𝜕𝑃𝐺𝑖 𝜕𝑃𝐺𝑖 𝜕𝑃𝐺𝑖 𝜕𝑃𝐺𝑖
𝜕𝐶𝑖
𝜕𝑃𝐺𝑖
𝜆=
𝜕𝑃𝐿
1−
𝜕𝑃𝐺𝑖
𝜕𝑃𝐿
→ 𝑖𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝑡𝑟𝑎𝑛𝑠𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑙𝑜𝑠𝑠 𝑜𝑓 𝑖𝑡ℎ 𝑠𝑡𝑎𝑡𝑖𝑜𝑛
𝜕𝑃𝐺𝑖
𝜕𝐶𝑖
𝜕𝑃𝐺𝑖 𝐼𝐹𝐶 𝑖
𝜆= =
1 − 𝐼𝑇𝐿 𝑖 1 − 𝐼𝑇𝐿 𝑖
Optimum Solution

𝜕𝐶𝑖
𝜆 = 𝐿𝑖
𝜕𝑃𝐺𝑖
1
𝐿𝑖 =
𝜕𝑃𝐿
1−
𝜕𝑃𝐺𝑖
𝐿𝑖 → 𝑃𝑒𝑛𝑎𝑙𝑡𝑦 𝑓𝑎𝑐𝑡𝑜𝑟 𝑓𝑜𝑟 𝑖𝑡ℎ 𝑠𝑡𝑎𝑡𝑖𝑜𝑛

• Condition for optimality:

𝝏𝑪𝟏 𝝏𝑪𝟐 𝝏𝑪𝒏

𝑳𝟏 = 𝑳𝟐 =⋯= 𝑳𝒏 =𝝀
𝝏𝑷𝑮𝟏 𝝏𝑷𝑮𝟐 𝝏𝑷𝑮𝒏

• Units of Penalty Factor and 𝜆?

Penalty Factor

• Assume the 𝑖𝑡ℎ plant generation is only changed by ∆𝑃𝐺𝑖 for a small
increase in the received load by ∆𝑃𝐷 . Generations of the remaining
units are unaffected. ∆𝑃𝐿 is the change in the transmission line loss.

∆𝑃𝐺𝑖 − ∆𝑃𝐿 = ∆𝑃𝐷

𝑑𝐶𝑖 𝑃𝐺𝑖 𝑑𝐶𝑖 𝑃𝐺𝑖 1 𝑑𝐶𝑖 𝑃𝐺𝑖 ∆𝑃𝐺𝑖

× 𝐿𝑖 = × = ×
𝑑𝑃𝐺𝑖 𝑑𝑃𝐺𝑖 ∆𝑃 𝑑𝑃𝐺𝑖 ∆𝑃𝐷
1 − 𝐿 ∆𝑃
𝐺𝑖
𝑑𝐶𝑖 𝑃𝐺𝑖 Incremental cost of the
= Penalty
𝑑𝑃𝐷 received power of the
𝒊𝒕𝒉 plant Factor

• The penalty factor of any unit is defined as the ratio of a small change
in power at that unit to the small change in received power when
only that unit supplies this small change in received power.
Transmission Loss Formula

• Transmission line loss can be approximated as;

𝑛 𝑛

𝑃𝐿 = 𝑃𝐺𝑝 𝐵𝑝𝑞 𝑃𝐺𝑞

𝑝= 𝑞=1
𝑛
𝜕𝑃𝐿
= 2𝐵𝑖𝑗 𝑃𝐺𝑗
𝜕𝑃𝐺𝑖
𝑗=1

𝜕𝑃𝐿
= incremental transmission loss
𝜕𝑃𝐺𝑖
𝐵𝑖𝑗 = loss coefficients
Transmission Loss Formula
• Incremental fuel cost of the 𝑖𝑡ℎ unit;
𝜕𝐶𝑖
= 𝑎𝑖 𝑃𝐺𝑖 + 𝑏𝑖
𝜕𝑃𝐺𝑖

𝑛
𝜕𝐶′
= 𝑎𝑖 𝑃𝐺𝑖 + 𝑏𝑖 − 𝜆 1 − 2 𝐵𝑖𝑗 𝑃𝐺𝑗 = 0
𝜕𝑃𝐺𝑖
𝑗=1

𝑛 𝑏𝑖
1−2 𝑗=1 𝐵𝑖𝑗 𝑃𝐺𝑖 −
𝜆
𝑗≠𝑖
𝑃𝐺𝑖 = 𝑎𝑖
+ 2𝐵𝑖𝑖
𝜆

• Iteratively solve the equations starting from an initial 𝜆 until the

solution converges.