Electrical Arc Furnaces (EAFs) consume time‐varying power. This causes mechanical torque variations in the nearby small scale synchronous generators (SSSGs) and reduces their life expectancy. In this paper, an appropriate EAF model is implemented and verified by using field measurements. Moreover, an actual distribution system to which an SSSG is connected to supply industrial loads including an EAF is investigated based on time‐domain simulation studies. To enhance dynamic performance of the SSSG adjacent to an EAF load, two novel approaches are presented in this paper. The first method is utilized for proper adjustment of governor controller parameters. Analytical and simulation‐based studies are accomplished to determine proper parameters of the SSSG conventional governor controller to mitigate the mechanical oscillations caused by EAF. These comprehensive investigations reveal that the governor PI controller proportional parameter should be adjusted as small as possible to mitigate the SSSG oscillations; while, the oscillations are fairly independent of integrator parameter. Besides, the integrator parameter should be set as high as possible to improve the SSSG dynamic performance. Moreover, a new modified SSSG governor controller including steady‐state and transient control loops is developed and a novel control strategy is proposed to enhance steady‐state and transient performance of SSSG. Finally, robustness and effectiveness of the proposed controller and its parameters are investigated using field measured EAF current signals for various transients. It should be noted that the proposed strategies of this paper can be also applied to similar cases where a nonlinear time varying load is connected to an SSSG.
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