Dynamic Economic Dispatch (DED) is one of the main functions of power generation operation and control. It determines the optimal settings of generator units with predicted load demand over a certain period of time. The objective is to operate an electric power system most economically while the system is operating within its security limits. This paper proposes a novel methodology for solving dynamic economic dispatch. Ten units test system with smooth and non-smooth fuel cost functions are considered to illustrate the suitability and effectiveness of the proposed method. © 2005 IEEE.