Comparison of reducing losses and reducing generation costs during electricity production

Price of electricity depends on the expenses which emerge during generation process. The bigger power plants have better fuel consumption characteristics comparing to the smaller ones. On the other hand, partition of generation lets reduce power losses in transmission lines, and makes system more stable. This paper considers some cases of using different sizes of power generation units taking into account fuel and emissions costs, capital and maintain equipment expenses. Three models with the power units of 200, 50 and 10 MW capacity were analyzed. Necessity of further study is proposed.