This paper deals with power quality enhancement of renewable energy source power network using SMES system and describes the operation characteristics of HTS SMES system using real-toroidal-type SMES coil for smoothening the fluctuation of large-scale renewable energy source such as photovoltaic (PV) power generation system. It generates maximum power of PV array under various weather conditions. SMES unit charges and discharges the HTS coil to mitigate the fluctuation of PV system output power. The SMES unit is controlled according to the PV array output and the utility power quality conditions. The grid connected PV and SMES system has been modeled and simulated using power-hard-in-the-loop simulation (PHILS). The PHILS results demonstrated the effectiveness of the SMES system for enhancing power quality in power network including large-scale renewable energy source, especially PV power generation system.