Load frequency control (LFC) is one of the key issues in the operation of power systems under deregulated conditions. In this paper Grey-Wolf Optimization (GWO) algorithm is implemented in optimal tuning of Proportional, Integral and Derivative (PID) controller with Integral Time Absolute Error (ITAE) based fitness function. The performance of this system is tested under different market conditions like Poolco, Bilateral and contract violation scenarios. Here we consider Distribution company (DISCO) Participation Matrix (DPM) and Area Participation Matrix (APM) in order to incorporate the market dynamics. Also Generation Rate Constraints (GRC) and external load disturbances are also taken into account. The analysis and simulations is carried out in inter-connected two-area deregulated power system and the effectiveness is compared with Genetic Algorithm (GA) tuned PID controller. The comparative results are presented which shows the superiority of proposed GWO algorithm.
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