With the increasing development of power market and the separation of the generation from the electric power network and the bidding for pool purchase in our country, how to reduce the cost of the production of electric power and obtain the economic dispatch is more and more important. In this paper, the whole framework of the dynamic monitoring system of the cost of production in power plant are given. The system has functions of disposing data, analyzing the cost of the production of electric power, economic dispatch, analyzing the economic of operational state, helping to make decisions for the bidding for pool purchase and so on. This paper analyzes the composing of the cost of the production of electric power and the optimization methods of economic dispatch and gives emphasis on the application of the equal incremental equation method to economic dispatch of generating load in Ma Wan power plant. The system studied in this paper is now in a primary stage in our country, and with the reform of power market developing increasingly, the system will be more useful and the application area will be wider.
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