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Establishing a safe, energy-saving and economical generation scheduling system is the key content to construction and realization of the smart grid. For the implementation of energy-saving and emission reduction policy in China, the government agency launched the Generation Sequence Table (GST) for power grid corporations. It was required that the renewable energy should be dispatched with highest priority; other thermal plants be scheduled according to the GST. This paper analyzes the drawback of existing energy-saving dispatching methods, and proposes a mixed integer linear programming model for scheduling of the smart grid under energy saving policy and renewable energy integration. The pumped storage unit is also considered in our model in order to deal with the intermittency and the anti peak regulation property of wind power generation. This method takes great advantages in computational efficiency and implementing the GST effectively. The IEEE 39-bus system is analyzed to exhibit the effectiveness of the proposed approach.