Economic load dispatch concerns with the operating cost rather than the fixed cost

Only fuel cost is considered in the study where all other costs that are depend on

the generated power will be included in the expression of the fuel cost

Obviously, the cost of fuel is concerned since thermal plants are assumed

An early approach of power dispatch was to supply power from the most efficient 

plant till the point of maximum efficiency and then from the next most efficient plant

and so on

Another approach was to load the machines so that

all units have the same incremental cost of production

However, the locations of power plants and the trans-mission losses are not

considered Generating power in far plants requires supplying the transmission

losses in addition to the load demand

Economic distribution of load demand among generating units necessitates

expressing the cost as a function of the generated power

The performance curve of boiler-turbine-generator set is required, which is called

input-output curve
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