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Modern submicron very large scale integration designs include huge power grids that are required to distribute large amounts of current, at increasingly lower voltages. The resulting voltage drop on the grid reduces noise margin and increases gate delay, resulting in a serious performance impact. Checking the integrity of the supply voltage using traditional circuit simulation is not practical, for reasons of time and memory complexity. The authors propose a novel multigrid-like technique for the analysis of power grids. The grid is reduced to a coarser structure, and the solution is mapped back to the original grid. Experimental results show that the proposed method is very efficient as well as suitable for both de and transient analysis of power grids.