A system for managing power delivery and power flow in a distribution grid having grid forming capability is disclosed. The system includes a connect-disconnect switches operable to connect a power transmission grid to and disconnect the power transmission grid from the distribution grid. The distribution grid includes renewable energy generators and a number of loads. The system further includes a full bridge shunt inverter system connected to the distribution grid. The full bridge shunt inverter system includes a four-quadrant DC-to-AC inverter and at least a battery for power storage and operable as a power source for grid formation. The system further includes a pair of active filters connected in series on the distribution grid. The full bridge shunt inverter system is connected to the distribution grid at a node between the active filters to enable impedance adjustment for managing and controlling the power flow in the distribution grid.