In recent times, the increasing concern for climate control has led to the widespread application of grid-connected inverter (GIC) based renewable energy systems. In addition, the increased usage of non-linear loads and electrification of the transport sector cause ineffective grid-frequency management and the introduction of harmonics. These grid conditions affect power quality and result in uncertainty and inaccuracy in monitoring and measurement. Incorrect measurement leads to overbilling/underbilling, ineffective demand and supply forecasts for the power system, and inefficient performance analysis. To address the outlined problem, a novel three-phase frequency component extraction and power measurement method based on Digital Lock-in Amplifier (DLIA) and Digital Lock-in Amplifier Frequency-Locked Loop (DLIA-FLL) is proposed to provide accurate measurement under the conditions of harmonics and frequency offset. A combined filter with a lowpass filter and notch filter for DLIA is employed to improve computation speed. A comparative study is performed to validate the performance of the proposed power measurement method, by comparing the proposed method to the windowed interpolated fast Fourier transform (WIFFT). The ZERA COM 3003 (a commercial high-accuracy power measurement instrument) is used as the reference instrument in the experiment