Traditional Economic Dispatch (ED) models are designed for scenarios with stable and abundant fuel supplies; therefore, they are not inherently tuned to handle fuel shortages. To ensure robust and efficient power management, the traditional ED must be modified to address these challenges. This article comprehensively analyzes the ED process for power plants with multiple fuel options, while achieving multiple objectives: optimizing energy management and boosting supply security. The proposed approach introduces a Dynamic Prohibited Operating Zones (DPOZs) framework that is adjusted in real-time based on available fuel quantities, ensuring a flexible, adaptive, and reliable control system. To assess the applicability and performance of the proposed ED with the DPOZs technique, an electrical power system consisting of 10 generating units with multiple fuel options is analyzed. The study evaluates its effectiveness in solving ED problems under various operating conditions using the Walrus Optimization Algorithm (WaOA), ensuring a thorough and reliable assessment. The results demonstrated the effectiveness of the proposed DPOZs approach for ED under various fuel shortage scenarios. This approach proved its capability to continuously monitor fuel consumption and update POZs for each type of fuel, it dynamically adjusts generation to maintain real-time supply-demand balance, minimize generation costs, and ensure power system stability.