Abstract-This paper demonstrates how structured model reduction can be used to reduce the order of power systems without the need to identify coherent groups of generators. To this end the Klein-Rogers-Kundur 2-area system is studied in detail. It is shown how different modes of the system are captured as the model order is varied, which is of interest in e.g. distributed controller design, where the objective is to damp these oscillations. The power system is divided into a study area and an external area and the proposed algorithm is used to reduce the external area to a low order linear system, while retaining the nonlinear description of the study area. It is shown that this approach permits greater deviations from the steady-state than if a reduced system that is entirely linear is used, while still yielding accurate simulation results.Index Terms-Model reduction of power systems, internal systems, structured model reduction, dynamic equivalents