This technology relates to systems and methods for effective selection of disparate distributed power sources for smart grid in near real time manner to meet the specific power demand. Power from the plurality of disparate power sources is received and then one or more power sources among the plurality of disparate power sources are selected based on one or more predefined requirements. At least one effective power source is determined from the one or more power sources by applying one or more algorithm based on number and range of the one or more power sources. The one or more algorithm comprise Complete Karmarkar Karp (CKK), pbrute, Heuristic based pbrute. A signal for selection of the at least one effective power source is generated and the signal is sent to a circuit switcher to supply the power from the at least one effective power sources to the smart grid.