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The speed droop value of governor model TGOV1 gives the relation between GREF and PMECH. If PMECH is 0.9 and droop R is 0.05 then GREF = R*PMECH = 0.05*0.9 = 0.045.

Here, the base for GREF is p.u. speed deviation.

GREF is the offset needed in the speed droop control to force the governor to output power PMECH at nominal speed (50/60 Hz).