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In a smart grid, various kinds of distributed generation (DG) sources could be connected into the main power grid in order to enhance the reliability of the power system. The combination of ac and dc distribution grid are also considered for the efficient connection of renewable power resources. In this case, one of the critical problems due to these integrations is the excessive increase in the fault current because of the presence of DG within the smart grid. In order to protect the smart grid from increasing fault current, a superconducting fault current limiter (SFCL) could be applied, which has negligible power loss and capability to limit initial fault currents effectively. This paper presents feasibility analysis results of the positioning of the SFCL and its effects on reducing fault current in a smart grid having ac and dc microgrid. The detailed power system was implemented with a microgrid having wind farm and low voltage dc grid connected with a photovoltaic farm. Transient analyses were performed for the worst case faults with the different SFCL arrangements. The strategic location of SFCL in the power grid, which could limit fault currents and has no negative effect on the DG sources, was found to be the connection point of integration of the each DG sources in the ac and dc microgrid.