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This paper proposes a steady operation of hybrid distributed generation (DG) system composed of dual renewable energy sources, a wind turbine (WT) and a fuel cell with the Flexible AC Transmission System (FACTS) controller. Recently more number of small scale renewable energy sources such as (WT) are connected to the national grid and the number counts on. However maintaining stable operation has become a challenge because of the practical difficulties in mitigating, harmonics, managing reactive power and balancing the unbalanced load are concerned. The proposed system uses a FACTS controller, specifically the Unified Power Quality Conditioner (UPQC) with Neural Network model is designed for steady operation that guarantee improved quality of power at their point of installation of hybrid DG system. The UPQC is one of the family of FACTS controllers which offer a variety of options including series and shunt active (P), and reactive (Q) power compensation to improve power quality. In this effort, the off line trained ANN with training data collected from the operating conventional PI controller has been developed. The collected conventional data is used in a novel control system with an Integrated Neural Network (INN) controller instead of the traditional multi PI controllers. The performance of INN controller is compared with proportional integral (PI) controller and the system performance is analyzed using simulation with Matlab/Simulink

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