Smart grid expertise emphasises on the compound connections of the electricity to the grid, along with computing, control and communication interface. It will bring together in future smart infrastructure for power system. Investigating these complex dynamic interactions is crucial for the efficiency and robustness of the emerging smart grid. In particular, it is one of the key elements for smart-grids to establish the dynamics among sources of grid. This paper proposes the vital operation of renewable energy sources (RES) like Solar Photovoltaic (PV), wind energy with existing grid of a. c. network of power system in view of cognitive reliable operation of RES as add-on source of power. The research presents sequence of operation of these sources by optimal power flow based on power flow chart for demand side management as a smart grid of power system. The system fulfils realistic operation for power system, based on fundamentals of power system, therefore a necessary research topology is developed, for well-regarded schemes of RES for setting up a pilot model so that demand side load should not be hampered and same is verified for linear and non-linear loads of electrical networks.