We propose an efficient method to estimate source power spectral densities (PSDs) in a multi-source reverberant environment using a spherical microphone array. The proposed method utilizes the spatial correlation between the spherical harmonics (SH) coefficients of a sound field to estimate source PSDs. The use of the spatial cross-correlation of the SH coefficients allows us to employ the method in an environment with a higher number of sources compared to conventional methods. Furthermore, the orthogonality property of the SH basis functions saves the effort of designing specific beampatterns of a conventional beamformer-based method. We evaluate the performance of the algorithm with different number of sources in practical reverberant and non-reverberant rooms. We also demonstrate an application of the method by separating source signals using a conventional beamformer and a Wiener post-filter designed from the estimated PSDs.