This paper analyses and proposes a different role for small distributed generation (DG) systems based on renewable sources, in the context of modern electrical grids. The main purpose of the system is to act as a grid services provider and not as a stochastic and dynamically unpredictable energy generator. Simulation models are defined and integrated in a hybrid renewable energy system (HRES) with storage, to study its behavior under suitable operation strategies. Being a small system with a production cost higher than a conventional one, its operation as a grid services provider, rather than only an energy generator, is proposed and analyzed firstly by simulation then validated by results from an experimental setup. Carried out results allow concluding that this a suitable system in the current context, either for distributed and smart grids, or for electrical market. (C) 2012 Elsevier Ltd. All rights reserved.