This paper examines the application of a two-level control scheme for a two-area power system model with non-linear interaction between the areas. The first level consists of independent local optimal controllers for the two areas which arc obtained by solving lower-order linear quadratic problems. The second level takes into account the system interactions between the areas using the method of interaction prediction. The two-level control scheme ensures that the performance of the overall power system is optimized. The results obtained using the interaction. prediction method are compared with those obtained by the method of intervention control. A two-area power system represented by a Ilt.h-order non-linear statespace model is used to illustrate the relative merits of the interaction-prediction approach.
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