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A paradigm change in energy system design tools, energy market, and energy policy is required to attain the target levels in renewable energy integration and in minimizing pollutant emissions in power generation. Integrating non-dispatchable renewable energy sources such as solar and wind energy is vital in this context. Distributed generation has been identified as a promising method to integrate Solar PV (SPV) and wind energy into grid in recent literature. Distributed generation using grid-tied electrical hubs, which consist of Internal Combustion Generator (ICG), non-dispatchable energy sources (i.e., wind turbines and SPV panels) and energy storage for providing the electricity demand in Sri Lanka is considered in this study. A novel dispatch strategy is introduced to address the limitations in the existing methods in optimizing grid-integrated electrical hubs considering real time pricing of the electricity grid …