Wide area damping control installation place and control signal selection method

The invention provides a wide area damping control installation place and control signal selection method based on frequency domain subspace identification and aggregation theories. The method is characterized by quantizing controllability and observability of a system and using an aggregation theory to acquire a controller controllability and observability integration index which is convenient for measuring; using a reduced-order aggregation model to replace an original system to carry out wide area control installation place and control signal selection; and using a frequency domain subspace identification theory to complete measurement and calculating of a quantitative index. By using the method, observability and controllability quantification analysis of different types of input and output variables can be realized and actual measurement is convenient to perform; and a whole process is convenient for engineering realization and the method can be applied in a large-scale electric power system.