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Innovations in renewable energy technology are becoming important as worldwide needs for affordable, reliable & clean energy grow worldwide. Research is needed for new generation technologies and effective integration of these into electric grid. Renewable sources are abundant particularly in India and we can harness these resources for producing electricity. Globally speaking, wind technology is in full deployment today, although others such as photovoltaic, wave energy are still in development stage. In some countries (USA, Korea) non hydro renewable sources generate 1-2% electricity however in next 10-15 years, it is expected to increase by 10 times. The main advantages of renewable sources are their being environment friendly, require lower capital investment and short construction period. Other benefits of distributed energy sources include long term energy security, decentralized supply for benefit of rural population, meet country's ever increasing energy demand. This paper discusses the need to incorporate renewable energy sources to grid/electric power supply, several issues and guidelines needed to be met before interconnection. It presents modeling, simulation and performance of an interface device modeled as voltage source inverter with a battery at the DC link (BESS).