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Many problems in the electricity demand of grid caused by the increases in the population. Moreover, the use of the conventional sources does not meet consumer demand. In this case, the use of renewable power will be very economical and beneficial to provide the required energy of consumers. In addition to that, smart grid is supposed to improve the quality and safety of renewable energy system through the ICT by providing monitoring and controlling capabilities. In this study, renewable energy potential of Algeria is discussed. Furthermore, a simulation of simple scaled micro grid to show the behavior of its components are performed in MATLAB/Simulink as a simple example of smart grid application.