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This paper presents a new algorithm called equal embedded algorithm is used to solve large scale economic load dispatch problem with prohibited zones and losses. The algorithm involves the selection of lambda values, then the output power expressions of generating unit are obtained in terms of the lambda by interpolation and finally the lambda is evaluated from the power balance equation by Muller method. The proposed algorithm was tested on a power system having 3, 6 and 20 generating units and the results were compared in terms of their solution quality, convergence characteristics and computation efficiency with the genetic algorithm, the two phase neural networks, the lambda iterative method and the particle swarm optimization method. Also the proposed algorithm was tested for large-scale system with 20 and 40 generating units. The proposed method gives minimum fuel cost with less computational time.