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Lambda Iteration Method
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The main aim here is to
reduce the production cost while maintaining the varying load demand at any
time of the day. A power plant has to provide the load to all conditions
throughout the day. It is therefore impossible to assume that the same level of
power must be generated at all time. The power generation must vary according
to the load pattern, which may in turn vary with season. Therefore the economic
operation must take into account the load condition at all times. In reality
power stations neither are at equal distances from load nor have similar fuel
cost functions. Hence by providing cheaper power, load has to be distributed
among the various power stations in a way which results in lowest cost of
generation.
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