This paper presents an improved particle swarm optimization (IPSO) to solve Multi-area Economic Dispatch (MAED) problem. The objective of MAED problem is to determine the optimal generating schedule of thermal units and inter-area power transactions in such a way that total fuel cost is optimized while satisfying tie-line, spinning reserve and other operational constraints. The spinning reserve requirements for reserve sharing provisions are investigated by considering contingency and pooling spinning reserves. The control equation of IPSO is modified by suggesting improved cognitive component of the particle’s velocity by suggesting preceding experience. The operators of IPSO are also modified to maintain a proper balance between cognitive and social behavior of the swarm. The effectiveness of the proposed method has been tested on four areas, 16 generators and 40 generators test systems. The application results show that IPSO is very promising to solve MAED problem.
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