A low-cost power router (PR), capable of dynamic, independent control of active- and reactive-power flows on meshed grids is presented. The operating principle, detailed schematics, and various possible implementations of the proposed power router are discussed. Various operating modes are identified and a control algorithm has been proposed and verified through simulations. Small-signal and frequency-domain models of the power router from basic time-domain equations are developed. A three-tier protection system based on the fail-normal switch to avoid single point-of-failure is presented. The operation of proposed protection system in isolating the converter and the grid in the event of faults is verified through simulation. An analytical method to evaluate the stability of a system with multiple power routers is proposed. Necessary conditions for the PR-controller design to ensure stable operation of a system with multiple power routers is proposed. These necessary conditions are verified through simulation studies. Potential applications of proposed power router in distribution system and the associated challenges in implementation are presented. The functionality and advantages of the proposed power router are experimentally demonstrated at 13 kV, 1 MVA. The proposed power router can result in a low cost power routing solution that can reduce electric grid congestion and efficient implementation of RPS mandates.