Question

Penalty factors in economic dispatch with losses are used to:

• A. Penalize generators for exceeding reactive power limits
• B. Account for the economic impact of power losses
• C. Ensure fair distribution of generation among units
• D. Minimize the total number of generators in operation

Hint:

Penalty factors adjust generation cost to reflect losses — crucial in accurate economic dispatch.

Answer 1

The Correct Option is B

Step 1: Understand penalty factors
In real power systems, transmission lines have losses. When determining how much power each generator should produce (economic dispatch), these losses affect total cost.
Step 2: Role of penalty factor
The penalty factor modifies the incremental cost of a generator to account for the additional cost due to power losses. It helps in ensuring that generators with lower transmission losses are utilized more.
Step 3: Mathematical context
Effective incremental cost = \( \text{Incremental cost} \times \text{Penalty factor} \)
Conclusion:
Option (2) is correct — penalty factors account for the effect of power losses in economic dispatch.