Low frequency electromechanical oscillations can pose a threat to the stability of power systems if not properly addressed. This paper proposes a novel methodology to damp these inter-area oscillations using loads, the demand side of the system. In the proposed methodology, loads are assigned to an aggregated cluster whose demand is modulated for oscillation damping. The load cluster control action is obtained from an optimal output feedback control (OOFC) strategy. The paper presents an extension to the regular OOFC formulation by imposing a constraint on the sum of the rows in the optimal gain matrix. This constraint is useful when the feedback signals are generator speeds. In this case, the sum of the rows of the optimal gain matrix is the droop gain of each load actuator. Time-domain simulations of a large-scale power system are used to demonstrate the efficacy of the proposed control algorithm. Two different cases are considered: a power imbalance and a line fault. The simulation results show that the proposed controllers successfully damp inter-area oscillations under different operating conditions and with different clustering for the events considered. In addition, the simulations illustrate the benefit of the proposed extension to the OOFC that enable load to provide a combination of droop control and small signal stability augmentation.
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