
In order to provide a reliable source of energy we have to think for some other sources of energy because the fossil fuel is limited and can last for another 50 years. The other source of energy must be clean and easily accessible to anywhere. The efficiency of the system can be increased by integrating the solar and wind to the grid. Harvesting the energy from these type of renewable sources of energy is nature dependent and hence are not reliable for the grid. However the integration of these sources with some storage devices can increase the reliability of the system to a great extent. The major problem associated with this type of system is the successful management of power control and its dispatch during the power swing. The quality of power decreases due to dynamic properties of both the hybrid system and that of the conventional system. The power quality of the system can be increased to a great extent with the use of some power electronic equipment like maximum power point tracking system in solar photovoltaic system and gear box in wind generator. This paper describes the strategic view of hybrid system and its economic analysis with conventional system.