Renewable energy in recent years become more and more common, due to the large increase in generation from renewable energy sources such as small hydropower stations, wind turbines, photovoltaic’s (PV) etc. This paper gives the report on two forms of renewable energy wind and solar energy,and on the role of smart grids in addressing the problems associated with the efficient and reliable delivery and use of electricity and with the integration of renewable sources. In this paper different power quality issues are addressed and a FACTS device STATIC COMPENSATOR (STATCOM) is connected at a point of common coupling for grid connected wind turbine to reduce the power quality problems likeharmonics in the grid current, by injecting superior reactive power in to the grid of wind turbine. And also an active power filter implemented with a four leg voltage-source inverter using DQ (Synchronous Reference Frame) based Current Reference Generator scheme is presented for renewable based distributed generation system of PV cell.
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