This paper proposes a robust hybrid fuzzy PID controller, with the PID gain values tuned using the particle swarm optimization (PSO) technique for the automatic generation control (AGC) of the two-area hybrid power system. PSO Algorithm is applied to reduce the integral of time-weighted absolute error (ITAE) of the frequency and tie-line power variations of the two-area interconnected power system. The suggested method’s efficacy is examined on an interconnected two-area power system with Area 1 containing thermal reheat plants, hydropower plants, and diesel generating units, and Area 2 comprising thermal reheat plants and renewable energy sources (RES): wind energy conversion system, solar photovoltaic system, and electric vehicles. The thermal reheat power plants are modelled taking into consideration the governor dead band (GDB) and the generation rate constraints (GRC). The performance of the presented controller is compared with the genetic algorithm-optimized PID AGC and the PSO-optimised PID AGC. The simulation outcomes show superior results of the proposed controller against other controllers. Further, sensitivity analysis reflects that the proposed technique provides better dynamic response and robustness than the other techniques.