The concern for huge increasing electricity demand, fossil fuel depletion, developed infrastructure reliability, carbon footprint reduction insisted the power utility companies to uptake RES (Renewable Energy Sources). The improved adoption of RES like wind energy and solar energy into the prevailing transmission and distribution networks led to several problems. These problems could be rectified by optimizing the power system parameters like frequency response, inertia, stability, battery usage, efficiency and power loss. This review hence provide a comprehensive analysis on the impact of renewable energy sources like wind and solar energy on power system operation and control in accordance with the major findings of the existing works. This review highlights the difficulties in the installation of solar and wind power with adoptable solutions. The challenges of power systems regarding the encoding of non-linearized function could be rectified by AI (Artificial Intelligence). The paper also insists the importance of artificial intelligence algorithm in the optimization of power system parameters. Artificial intelligence methods is useful for resolving various issues in power systems such as control, scheduling, forecasting etc. Few artificial algorithms such as Atom search optimization, Particle swarm optimization, Salp swarm optimization were investigated in this review for improving the performance of the power system. In spite of optimization analysis, the paper investigate various storage system types for improving the power system in accordance with cost, application and operation characteristics. Proper understanding of these systems is necessary for the future designing and hence through revision of state of art characteristics has been performed in this paper.