Automatic generation control of an interconnected power system under deregulated environment

The electric power industry is in the beginning throes of a transformation from a cost-based regulated system to a more market-based deregulated structure. This paper attempts to develop a realistic automatic generation control (AGC) model for a two area reheat thermal power system under an open market environment. The analysis is carried out by considering dual rate sampling. Optimum integral gain setting of the controller and inadvertent interchange bias setting have been obtained using the ISE technique considering a performance index as proposed by Kothari et al. (1990) under both the conventional cost based structure as well as the deregulated structure. The effect of various load following contracts on the performance of the controller in a deregulated environment has been investigated