This article proposes a new method of modelling dynamic loads based on instantaneous p-q theory, to be employed in large powers system network simulations in a digital real-time environment. Due to the use of computationally heavy blocks such as phase-locked-loop (PLL), mean calculation,and coordinate transformation blocks (e.g., abc–dq0), real-time simulation of large networks with dynamic loads can be challenging. In order to decrease the computational burden associated to the dynamic load modelling, a p-q theory-based approach for load modelling is proposed in this paper. This approach is based on the well-known p-q instantaneous theory developed for power electronics converters, and it consists only of linear controllers and of a minimal usage of control loops, reducing the required computational power. This improves real-time performance and allows larger scale simulations. The introduced p-q theory-based load (PQL) model has been tested on standard networks implemented in a digital real time simulator, such as the SimBench semi-urban medium voltage network and the 118-bus Distribution System, showing significant improvement in terms of computational capability with respect to standard load models (e.g., MATLAB/Simulink dynamic load)