Power diodes are designed to handle high voltages and currents. They have a larger p-n junction that allows more current flow compared to signal diodes. When forward biased, power diodes conduct with a small voltage drop of 0.8-1V. When reverse biased, they block voltage until the avalanche voltage is reached, at which point a small leakage current flows. Power diodes are used in applications requiring high power handling like welding equipment and battery chargers.