Economic　load　dispatch　is　complex　and　non-linear　problem,　it　is　difficult　to　solve　the　problem　using　traditional　optimisation　method.　PSO　has　been　successfully　applied　to　a　wide　range　of　applications,　in　solving　continuous　non-linear　optimisation　problems.　This　paper　presents　a　novel　hybrid　PSO　algorithm　with　dynamic　inertial　weight　and　chaotic　search　to　solve　the　problem.　The　improved　hybrid　PSO　enhanced　the　global　search　ability　of　the　algorithm　and　improved　its　convergence　speed.　The　hybrid　PSO　algorithm　was　successfully　validated　for　two　test　systems.　Numerical　simulation　results　show　that　the　modified　hybrid　PSO　algorithm　outperformed　standard　PSO　algorithm　and　genetic　algorithm　on　the　same　problem　and　can　save　considerable　cost　of　economic　load　dispatch.　Copyright　©　2010　Inderscience　Enterprises　Ltd.