Bus Incremental Costs and Economic Dispatch

Various analytical techniques have been developed for the economic dispatching of generation to meet system load. A recently proposed approach to economic dispatching, which has bus incremental costs as the key variables, offers a possibility to get an insight into the economic dispatch mechanism. This paper attempts to derive and promote some novel concepts showing how bus incremental costs can be viewed as a "potential" in a dispatch analog of the power system, such that basic electrical network solution techniques can be readily applied to solve the economic dispatch problem.