An isolated power system was described as a local electrical network consisting of a transformer and isolation generator with branch circuits intended for specific uses. In an isolated power system, the essential primary source is the local generator. Unbalanced power and serious frequency deviation issues might result from the system’s extreme sensitivity to abruptly high equilibrium conditions of electrical load demand. Therefore, the primary goal of this study is to use frequency observation to estimate the power deficit for isolated power systems. In order to create a power deficit estimator, the state-space model equations were added to the structure of H2 norm filtering problems. Then, from the error system after decomposition, the feasibility of Linear Matrix Inequality (LMI) was verified and guaranteed the stable H2 filter to estimate the power deficit. The formulation of H2 filter under the uncertain inertia constant parameter was covered in this paper to investigate the robustness performance. At the last section, the proposed estimator result was compared with the conventional initial slope method. The results show the under-estimation, but it guarantees the stable estimation process under the trade-off of the H2 norm optimization.
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