Improved cost functions for economic dispatch compensations (on power systems)

Two polynomial curve fitting methods, Gram-Schmidt orthonormalization and the least-squares method, are evaluated for power system load dispatching economics analysis applications. It is shown that the Gram-Schmidt method, which does not require matrix inversion, gives more accurate fuel cost curves. Also, a constraint equation can be included in both methods to insure that incremental cost curves are monotonically increasing. Numerical examples are included to demonstrate the results.<
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