Currently, renewable energy sources (RESs) are gradually replacing traditional power sources that use fossil fuels. In some countries, such as Vietnam, RESs are developed on a massive scale and are concentrated in some key areas. This causes negative impacts on a power system when its transmission system is not deployed synchronously to release their capacity from these new renewable energy plants. An important challenge today is to ensure frequency stability in power systems with high uncertainty in RES output power. Additionally, the system requires solutions to prevent transmission line overloads during periods when RESs make a substantial contribution to the electricity generation capacity. Therefore, this paper builds an automatic generation control (AGC) system for a two-area power system with high penetration of RESs. This AGC system model aims to maintain system frequency stability amid unpredictable changes in RESs while also ensuring that tie-lines transmit the predetermined power levels to mitigate frequent congestion. By continuously monitoring and adjusting the system’s frequency, the challenges posed by the inherent variability of RESs can be effectively mitigated. The AGC model is simulated on DIgSILENT PowerFactory software and tested with a 106-bus system. The simulation results of this study show that the AGC system operates effectively, ensuring that the frequency returns to the rated value and maintaining the exchange capacity on the tie-lines after occurrences of RES power decrease events.