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In this paper, a new simulation model is developed to be able to simulate diesel genset smart grid interconnection by keeping in view future requirements of the grids and grid codes. The simulations are carried out in Matlab/Simulink environment. An example case is based on 1200 kW variable speed diesel genset with permanent magnet synchronous generator (PMSG). The simulations are carried out for various dynamic behaviours of PMSG and their protection and control facilities, which are necessary in normal operating conditions and in a range of disturbed operating conditions in order to preserve or to re-establish system security. Various faults (e.g. disturbances) have been induced in the distribution system and the robustness of the network has been analysed to make sure continuous supply of electricity to the consumers in the future smart grid environment.

Future renewable energy systems, which are based on decentralized energy production, are smart grids that embody advanced automation and communication technologies to maintain the level of reliability and power quality present in traditional centralized power systems. In this thesis, a real-time laboratory interconnection proposed in the European Research Infrastructure supporting Smart Grid Systems Technology Development, Validation and Roll Out (ERIGrid) project was implemented in Multipower laboratory at VTT Technical Research Centre of Finland. The main goal of ERIGrid is to develop integrated research infrastructure for smart grids.A literature review of relevant remote connections and interconnections conducted previously are presented. Relevant standards IEC 61850 and Common Information Model (CIM) and their harmonization are discussed. The case laboratory and Joint Research Facility for Smart Energy Networks with Distributed Energy Resources (JaNDER), a concept for implementing interconnection between laboratories developed in the ERIGrid project, are portrayed. Based on the information presented the real-time laboratory interconnection was implemented and testing was conducted to obtain possible example delays for data transfer via the interconnection.The key result of this thesis is that the implementation of the real-time laboratory interconnection was successful. Possible example delays were obtained during the testing, but further testing is needed to obtain statistical delay values.