The availability of electrical energy ensures development and progress of a country while its non-availability means economic stagnation or 'backtracking'. The condition of 'No Power' is the costliest state and leads to social, economical and production loss. Power system blackout means inconvenience and hardship to society. Therefore, reliable and disturbance-free electric power supply is recognised as a key to societal progress throughout the world. Uninterrupted power supply is therefore essential for a higher national productivity and improvement in the social structure. Grid failure can occur due to a variety of causes such as: continued over-stressing, low frequency operation, increased load demand, peaking characteristics of the demand, ineffective load control, reduced level of security due to opening of interstate lines and violation of grid discipline. Separating healthy part in the system during fault at pre-determined points is called as islanding. This is to ensure supply of power to industries to reduce economic losses. In a complex system, intentional islanding becomes necessary to save healthy part to recover from the blackout. In this research work, Thermal Power Stations (TPS) are considered for intentional islanding as they have the highest installed capacity in India. Due to the effect of grid disturbance, a generating station usually experiences a shortfall of power for running its auxiliaries. © Springer International Publishing AG 2017. All rights reserved.