In this paper, we investigate the impact of interconnect and device process variations on voltage fluctuations in power grids. We consider random variations in the power grid's electrical parameters as spatial stochastic processes and propose a new and efficient method to compute the stochastic voltage response of the power grid. Our approach provides an explicit analytical representation of the stochastic voltage response using orthogonal polynomials in a Hilbert space. The approach has been implemented in a prototype software called OPERA (Orthogonal Polynomial Expansions for Response Analysis). Use of OPERA on industrial power grids demonstrated speed-ups of up to two orders of magnitude. The results also show a significant variation of about /spl plusmn/35% in the nominal voltage drops at various nodes of the power grids and demonstrate the need for variation-aware power grid analysis.