Power generation by using hydrogen energy is having significant priority during peak loads or under lower power generation conditions. Electricity can be easily produced by hydrogen with releasing any harmful gases to atmosphere as well as can meet load demand very quickly. During deficiency in generation from other power sources, the frequency of the system can be maintained through hydrogen based power generation units. A fuel cell (FC) stack can able to produce required amount of electricity from hydrogen and oxygen. Therefore grid connected FC can maintain power quality at local buses as well as can meet the load demand. Apart from transferring active power into grid from FC, the interfacing inverter of FC into grid can also improve power quality at local buses by injecting reactive power to make constant voltage during low voltages of grids. A novel control scheme based powers is implemented in this paper with the help of proportional plus integral (PI) controllers. The modeling of FC is also incorporated in the paper for best understanding.Various performances of the proposed method are tested under various case studies to present results by using MATLAB/Simulink package.