Recent studies have developed a power electronic device known as the power router, able to fully control the power flows over the connected power lines. The present paper aims to extend the application of power routers to an electrical grid and explore its characteristics and limitations. It defines the power router grid concept, including the conditions for interconnection and architecture; it proposes a mathematical modelling methodology, analyses its operational requirements, and explores the degree of flexibility the proposed grid architecture provides. Finally, two case studies are presented to show the application of the power router grid in a practical example.INDEX TERMS Distribution grid, energy router, modeling, power router, smart grid.