This study proposes an Iterative Linear Matrix Inequality (LMI)-Tuned Proportional-Integral-Derivative (PID) controller for robust decentralized AGC in the context of deregulated electricity markets. The study addresses the challenges posed by market uncertainties and diverse generation sources, aiming to enhance the stability and performance of power systems. This study is driven by the urgent need to develop robust AGC strategies that are adapted to the complex dynamics of decentralized power systems operating in deregulated markets. The conventional centralized control approaches are often inadequate to address the diverse and distributed nature of modern generation units. Furthermore, the intermittent and variable nature of renewable energy sources adds a layer of complexity that demands innovative control solutions. The impact of bilateral contracts on the dynamics is taken into consideration while modifying the conventional LFC of interconnected power networks. To model these bilateral contracts, the distribution company (DISCO) participation matrix (DPM) is presented, and the multi-area block diagram reflects these concepts. Simulation studies are conducted to evaluate and compare the performance of the proposed Iterative LMI-Tuned PID Controller and Conventional PID Controller. Results are analyzed against key performance metrics, considering scenarios reflective of diverse market conditions. Comparative studies with the conventional PID controller provide insights into the efficacy and robustness of the proposed approach.
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