In current power system analysis, integrating dispersed renewable power sources into the infrastructure is a major difficulty. Technical, economic, and environmental factors are considered in this research to optimise distributed renewable power integration. This study presents new power grid performance and reliability methods using advanced power system analytic techniques such load flow analysis, voltage stability evaluation, and transient stability analysis. This research uses sophisticated control algorithms and advanced optimisation to reduce power fluctuations, stabilise the grid, and maximise distributed renewable energy use. The suggested framework balances intermittent renewable sources with demand variations for a sustainable and resilient power system. This research shows that the proposed optimisation strategies are feasible and effective through comprehensive simulations and case studies, providing policymakers, system operators, and stakeholders with valuable insights for sustainable distributed renewable energy integration in the power system.