During the last decades, significant advances have been made in the area of power system stability and control. Nevertheless, when this analysis is carried out by means of decentralized conditions in a general network, it has been based on conservative assumptions such as the adoption of lossless networks. In the current paper, we present a novel approach for decentralized stability analysis and control of power grids through the transformation of both the network and the bus dynamics into the system reference frame. In particular, the aforementioned transformation allows us to formulate the network model as an input-output system that is shown to be passive even if the networks lossy nature is taken into account. We then introduce a broad class of bus dynamics that are viewed as multivariable input/output systems compatible with the network formulation, and appropriate passivity conditions are imposed on those that guarantee stability of the power network. We discuss the opportunities and advantages offered by this approach while explaining how this allows the inclusion of advanced models for both generation and power flows. Our analysis is verified through applications to the Two Area Kundur and the IEEE 68-bus test systems with both primary frequency and voltage regulation mechanisms included.
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