As the requirement of expensive and unreliable high band-width communication infrastructure is obvi- ated, decentralized droop-like control method has been considered for power sharing implementation in autonomous microgrids (MGs). To this end, the power network is regarded as a communication link and voltage variables (magnitude and frequency) as control signals. This, however, reduces the stability margin of islanded MGs due to the interaction of droop controllers through the power network. Lack of inertia of droop-controlled power converters and low X/R ratio of interconnecting power lines intensify this interaction which may lead to the instability of Networked MGs (NMG). On the other hand, the existing parallel-based small signal model of MGs is inadequate to represent this interaction, as the adopted common-based reference frame (RF) is not applicable in islanded NMGs. This issue is investigated in this work in details and, inspired from power flow equations, a local RF is proposed to improve the small-signal model accuracy. Droop controllers are also correlated through the power flow equations to properly model their interaction through the power network. Moreover, the state- space model is developed in a fully decentralized approach which does not rely on any converter for any specific role. Eigenvalue analysis and simulation in MATLAB\SIMULINK platforms are executed to evaluate the effectiveness and accuracy of the proposed model
