arXiv:2601.06766v2 Announce Type: replace Abstract: The growing integration of renewable energy sources into distribution networks poses significant challenges to frequency and voltage stability due to their intermittent nature and low-inertia dynamics. This paper proposes a multilevel control framework for a future decarbonized power system, using energy storage systems as power buffers to mitigate frequency and voltage fluctuations. A nonlinear interconnected model is formulated to describe the multilevel aggregated dynamics of the distribution network. To reduce the operational complexity and communication overhead of the control system, a distributed linear quadratic regulator strategy is developed based on bottom-up information exchange, where each level implements local feedback control over a short time horizon. Local stability conditions are established for the open-loop nonlinear model, and the closed-loop stability is characterized by the Hurwitz property of the system matrix. Performance bounds are also derived to quantify the gap between the distributed and centralized control strategies.