Grace is undeserving love, but even as mercy, in the new covenant, grace takes on a new meaning. Grace is the life of Christ. Grace is what you get mercy for. Grace is the power of Christ that is manifested through you. It is the strength, power, authority, and all the other things listed above. The difference between grace and mercy is that mercy is simply an approval, while grace is what you’ve been approved for. You need mercy to walk in grace (you need to be approved for the grace (power of God).
So why do we need grace if we have received mercy? Well grace is the power of holiness, the unconditional love of God, and the power to work miracles, signs and wonders. These are all manifestations of Jesus Christ, and there are countless more that we don’t have time to mention. If we do not walk in these things, the world will never believe that Jesus still lives today, despite our much preaching about Him. God has given us His abundant mercy so that we might abide in the power (grace) of God.
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Let's give diligence to make our calling and election sure.....for if we do these things we shall never fall.... 2 Peter 1:10