Abstract
This paper presents the design of a Linear Quadratic Gaussian (LQG) regulator for the frequency control of a multi-area power system in a restructured competitive electricity market environment. A general model of the LQG regulator has been developed for multi-area system (with hydro and thermal generators) having Poolco and bilateral transactions. To account for the modeling uncertainties and non-measurable states, a Kalman filter has been designed to estimate the state variables. The controller uses these estimates, optimizes a given performance index, and reschedules the generators outputs according to their bids for the frequency regulation. The functioning of the proposed LQG regulator has been demonstrated on a four area test system and the results have been compared with those obtained by using an optimal PID controller.
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