A method for forming and operating a multi-terminal power system, includes: connecting multiple sending terminals to a network of a power system; and local control of each sending terminal to behave as a constant-power source such that both output voltage and output current of the sending terminal may simultaneously vary in response to changing external circuit conditions while maintaining constant a product of the output voltage and the output current of the sending terminal. At least one sending terminal may include a capacitive output converter having a capacitor connected between two output terminals and a controlled current source connected in parallel to the capacitor, or an inductive output converter having an inductor connected to an output terminal and a controlled voltage source connected in series with the inductor.