The figure shows a two-generator system supplying a load of $${P_D} = 40\,MW,$$ connected at bus $$2.$$

The fuel cost of generators $${G_1}$$ and $${G_2}$$ are: $${C_1}\left( {{P_{G1}}} \right) = 10,000\,\,Rs/MWhr$$ and $${C_2}\left( {{P_{G2}}} \right) = 12,500\,\,Rs/MWhr$$ and the loss in the line is $$\,{P_{loss(pu)}} = 0.5\,\,P_{G1\left( {pu} \right),}^2\,\,\,\,$$ where the loss coefficient is specified in pu on a $$100$$ $$MVA$$ base. The most economic power generation schedule in $$MW$$ is

The incremental cost curves in Rs/MWhr for two generators supplying a common load of $$700$$ MW are shown in the figures. The maximum and minimum generation limits are also indicated. The optimum generation schedule is:

In order to have a lower cost of electrical energy generation,