This work introduces an innovative approach that unites a PIDND2N2 controller and the balanced arithmetic optimization algorithm (b-AOA) to enhance the stability of an automatic voltage regulator (AVR) system. The PIDND2N2 controller, tailored for precision, stability, and responsiveness, mitigates the limitations of conventional methods. The b-AOA optimizer is obtained through the integration of pattern search and elite opposition-based learning strategies into the arithmetic optimization algorithm. This integration optimizes the controller parameters and the AVR system’s response, harmonizing exploration and exploitation. Extensive assessments, including evaluations on 23 classical benchmark functions, demonstrate the efficacy of the b-AOA. It consistently achieves accurate solutions, exhibits robustness in addressing a wide range of optimization problems, and stands out as a promising choice for various applications. In terms of the AVR system, comparative analyses highlight the superiority of the proposed approach in transient response characteristics, with the shortest rise and settling times and zero overshoot. Additionally, the b-AOA approach excels in frequency response, ensuring robust stability and a broader bandwidth. Furthermore, the proposed approach is compared with various state-of-the-art control methods for the AVR system, showcasing an impressive performance. These results underscore the significance of this work, setting a new benchmark for AVR control by advancing stability, responsiveness, and reliability in power systems.