This research work also aims at designing and developing protection and control strategies of the hybrid smart grid and implementing smart ideas to increase the system stability and efficiency. Moreover, this research will lead to the facilitation of renewable energy integration to the electric grid, which means more utilization of green energy. This not only affects residential, industrial and commercial consumers, but also naval shipboard power systems. I develop and investigate different ideas related to the real time control and monitoring of smart grids involving renewable energy sources. Furthermore, the applicability, design and protection of a DC distribution system as a replacement of the conventional AC system are discussed. In this research the design and investigation on  lithium-ion battery model and battery bank, together with thermal and temperature monitor system, which can be used to emulate future plug-in electric vehicles (PEVs) parking garage were done. Some smart charging algorithms is developed to limit the battery charging impacts to the AC side, also do some Vehicle to Grid (V2G) services like frequency regulation and react power compensation. In overall, the, main objective of my research is to build all the components, control and protection techniques to have a fully equipped laboratory-based test bed at as hybrid power system with energy storages. Moreover, I apply some ideas on this system to enhance the stability of the system in the presence of renewable energy sources.