This paper proposed Micro grid can operate in a grid-tied or autonomous mode. The coordination control algorithms are proposed for smooth power transfer between ac and dc links and for stable system operation under various generation and load conditions. This Micro grid system operates under normal conditions which include normal room temperature in the case of solar energy and normal wind speed at plain area in the case of wind energy. The Power Balancing Control simulation results are presented to illustrate the operating principle, feasibility and reliability of Micro grid proposed system. Increasing electrification of daily life causes growing electricity consumption, rising number of sensitive/critical loads demand for high-quality electricity, the energy efficiency of the grid is desired to be improved, and considerations on climate change are calling for sustainable energy applications. All these factors are driving the conventional electricity grid to the next generation of grid, i.e. smart grid, which is expected to appear and coexist with the existing grid, adding to its capacity, reliability, and functionalities. Consequently, the applications of distributed generation (DG) systems are emerging, and most will be interfaced to the grid through power-electronics converters. However, the grid will become much more complex due to the increasing number of DG systems. For instance, the traditional one way power flow is broken by the bidirectional power flow.