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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. [ABSTRACT FROM AUTHOR]

The aim of this paper is to define and develop an optimal hierarchical demand-side power-system primary-frequency control structure in order to provide a reliable complement to generator inertia and governor response while improving inter-area oscillation damping. This resilient optimal load control strategy utilizes both wide-area and local signals to guarantee that the system remains stable in the case of communication failures. In the device layer, we deal with demand-response and frequency regulation by minimizing the total disutility of consumers subject to power balance and frequency regulation over the network. In the supervisory layer, we handle the power system's electromechanical oscillations using an linear-quadratic regulator (LQR)-based state feedback scheme with sparsity promotion to achieve the necessary tradeoff between complexity and performance. Since the wide-area feedback loops are built on top of an existing decentralized load control strategy, this design approach creates a decentralized/hierarchical demand-side load-control structure with significant advantages in terms of reliability and operational flexibility. Our study clearly shows by simulation that a demand-side hierarchical load-control strategy has a significant potential for improving the dynamic performance of power systems, even when implemented with a limited number of measurement units and controlling less than $1\%$ of the total base load. [ABSTRACT FROM AUTHOR]