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This paper presents four quadrant measurement of power in an inter-connected power system using instantaneous active reactive power theory (IARP). This paper focuses on the IARP theory for measuring four quadrant powers and its deployment in a digital signal processor (DSP) based system. Besides the real time implementation of the method this algorithm is implemented on a fixed point digital signal processor (DSP) TMS320F2806. Simulation and experimental results confirm the validity of the method.