this paper discusses the technology of smart grid implementation and distributed generation which can be used to improve the reliability of existing power supply to Al-Zawea refinery's critical loads. Al-Zawea Refinery electric network experienced some active power fluctuations when it's connected to the national grid. Fluctuations causes disturbances to the electrical network during the operation hours. In order to mitigate the fluctuations smart grid technologies have been proposed to improve the performance of the existing power system.