The decrease in feature size and added chip functionality in large sub-micron integrated circuits demand larger grids for power distribution. Since power grids are performance limiting factors [1, 2, 3], then their analysis is important in order to (1) predict the performance and (2) improve the performance if necessary. Thus, there is a clear need for new efficient, in terms of both execution time and memory, techniques for power grid analysis.This paper discusses the modeling of power grids and proposes a new PDE-like multigrid method for the simulation of power grids. The proposed method is very efficient and suitable for both DC and transient simulation of power grids.