Optimization of the optimal coefficients of non-monotonically increasing incremental cost curves

Abstract An algorithm is presented in this paper based on least absolute value (LAV) approximations for estimating the coefficients of a fuel cost I/O curve that exhibits non-monotonically increasing characteristics, and is used for economic dispatch calculation (EDC). A special constraint equation is included to insure that the incremental cost curve exhibits monotonically increasing characteristics. The number of linear segments and their corresponding ‘break points’ are determined in an optimal manner. Numerical examples are reported that demonstrate practical results; the results obtained using the proposed algorithm are compared with those obtained using the weighted least error squared algorithm.