  We consider the problem of voltage stability and reactive power balancing in
islanded small-scale electrical networks outfitted with DC/AC inverters
("microgrids"). A droop-like voltage feedback controller is proposed which is
quadratic in the local voltage magnitude, allowing for the application of
circuit-theoretic analysis techniques to the closed-loop system. The operating
points of the closed-loop microgrid are in exact correspondence with the
solutions of a reduced power flow equation, and we provide explicit solutions
and small-signal stability analyses under several static and dynamic load
models. Controller optimality is characterized as follows: we show a one-to-one
correspondence between the high-voltage equilibrium of the microgrid under
quadratic droop control, and the solution of an optimization problem which
minimizes a trade-off between reactive power dissipation and voltage
deviations. Power sharing performance of the controller is characterized as a
function of the controller gains, network topology, and parameters. Perhaps
surprisingly, proportional sharing of the total load between inverters is
achieved in the low-gain limit, independent of the circuit topology or
reactances. All results hold for arbitrary grid topologies, with arbitrary
numbers of inverters and loads. Numerical results confirm the robustness of the
controller to unmodeled dynamics.
