JPS_V3_N1_A1 Swati Takiyar K.G. Upadhyay Journal on Power Systems Engineering 2322–0376 3 1 1 7 Smart Grid, Indian Power Sector, Regional Load Dispatch Centre, Power Grid, Information and Communication Techniques (ICT) This paper presents a method of integrating Active Power Filter (APF) in Photo Voltaic(PV) system. Distributed Generation (DG) concept is attracting the attention of power sector engineers throughout the world due to its technical, economical and environmental benefits. Among the various possibilities of DGs, photovoltaic (PV) systems have drawn prominent attention In spite of their high cost and poor conversion efficiency. Power quality issues such as harmonics, are inevitable in such distribution system which must be sorted out. Separate Passive/Active Filters can be used for this purpose. However single VSI Converter can be made used for processing and connecting PV energy to system as well as for power Quality improvement of the whole system. This reduces the complexity and cost of the system significantly. The proposed PV System with single converter acting as APF is not only able to track the maximum power point of the photovoltaic energy but also compensate harmonic currents from the grid line and correct the power factor. Peak detection method of control strategy is employed in APF for power quality improvement. P&O algorithm is used for achieving Maximum Power Point Tracking of the PV generator. The proposed system of APF embedded in PV system is simulated using MATLAB/SIMULINK and tested for power quality improvement under the maximum Power Point Tracking of PV generator.With aggressive population growth coupled with robust economic growth India's energy sector is yet to face the worst. With limited conventional fuel resources India has already begun working at its alternatives. While this does not seem to be complete other major issues like poor power quality, extremely high losses, low grid reliability and rampant peak demands stare in the face of the economy. Smart Grid has been recognized world-wide as the solution to all problems pertaining power to which India is no exception. Smart Grid is not a single formulation but a broad vision. It uses modern Information and Communication Techniques (ICT) to impart robustness and flexibility to the grid. It offers smart metering and variable pricing, based on time of use and current demand, as higher end solutions. It also imparts self-healing attributes to the conventional grids. While these list the major but not all the services promised by Smart Grid, it seems appropriate to call it the ultimate solution. The study first details the current scenario of the Indian Power Sector. It later converges to legitimizing the necessity of Smart grid in the Indian perspective. February – April 2015 Copyright © 2015 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=3353