The deregulated power system has paved the way for a significant number of distributed energy resources (DER). This results in a large installation of renewable sources in the grid. Thus large installations of PV systems are becoming more common. These Centralized PV systems can cause major issues in the existing grid if these are not adequately addressed. The significant contribution of these systems can cause problems with the dynamic stability of the power system. The intermittent and inertia-less nature of PV systems can produce significant power oscillations. At the present condition, the penetration level of PV into the grid is limited by the utilities, to prevent problems of power oscillation. Thus the PV plant capacity cannot be increased beyond the penetration limit. The penetration limit depends on several factors such as the types of loads, stability enhancement devices on the grid. The penetration limit regulated cyclically. This paper proposes a control strategy for power oscillation damping in power systems implemented in Grid-connected converters (GCC) so that the power system stability is enhanced without any additional cost of equipment. This, in turn, helps to provide a penetration margin and thereby to increase the PV capacity of the grid.
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