Power quality (PQ) disturbances are becoming an important issue in smart grids (SGs) due to the significant economic consequences that they can generate on sensible loads. However, SGs include several distributed energy resources (DERs) that can be interconnected to the grid with static converters, which lead to a reduction of the PQ levels. Among DERs, wind turbines and photovoltaic systems are expected to be used extensively due to the forecasted reduction in investment costs and other economic incentives. These systems can introduce significant time-varying voltage and current waveform distortions that require advanced spectral analysis methods to be used. This paper provides an application of advanced parametric methods for assessing waveform distortions in SGs with dispersed generation. In particular, the Standard International Electrotechnical Committee (IEC) method, some parametric methods (such as Prony and Estimation of Signal Parameters by Rotational Invariance Technique (ESPRIT)), and some hybrid methods are critically compared on the basis of their accuracy and the computational effort required.