Abstract: All of the components of modern power systems, such as generator set, HVDC, FACTS apparatus, are equipped with corresponding controllers. In many research areas, such as the design of area controllers, simulation or analysis, there is the need of constructing integral area models including controllers of each component. Meanwhile, the integral area model including component controllers should be further simplified, for it is very complex. The simplified area model should not only precisely describe the main dynamics of the area, but also have low degrees, low complexity and low nonlinearity. Here, the core of simplification is how to simplify the component model including component controller. This series papers constructed the integral component structural models including component controllers, which is expressed by differential-algebraic equations, and the corresponding simplification method was also given. The proposed simplification method can obviously reduce the complexity of the models, such as the degrees of differential equations, but some important characters can also be held, such as differential-algebraic structure and hidden dynamics. Compared to the proposed method, traditional equivalent linearization simplification method can not change the degree of equations, and is only valid in local operating points. Simplification method based on dominant pole placement is difficult to be used for differential-algebraic systems, and can not hold hidden dynamics. Thus the proposed method can give suitable area models for real-time control. In this paper, the general expression of the integral and simple componentstructural model and corresponding normalized construction method was given. As an example, the integral structural model and simplified model of generator set, including traditional analytic expressions and non-analytic expressions based on ANN method were constructed. The numerical simulation indicates that the simplified models can match the original one with the similar dynamic response behaviors.