A method for maintaining sufficient reactive current margin in a power system connected to a power grid includes receiving, via a power limiter system, a reactive current command and an upper reactive current limit for the power system. The method also includes determining, via the power limiter system, a reactive current margin signal as a function of the reactive current command and the upper reactive current limit. Further, the method includes generating, via the power limiter system, a power command signal based on the reactive current margin signal. Moreover, the method includes controlling, via a system controller, operation of the power system based at least partially on the power command signal.