Wave energy converter (WEC) harnesses energy from the ocean to produce electrical power. The electrical power produced by the WEC is fluctuating and is not maximized as well, due to the varying ocean conditions. As a consequence, without any intermediate power conversion stage, the output power from the WEC can not be fed into the grid. To feed WEC output power into the grid, a two-stage power conversion topology is used, where the WEC output power is first converted into DCpower through rectification, and then a DC-AC converter (inverter) is used to supply AC power into the grid. The main motive of this research is to extract maximum electrical power from the WEC by active rectification and smoothing the power fluctuation of the wave energy converter through a hybrid energy storage system consisting of battery and flywheel. This research also illustrates active and reactive power injection to the grid according to load demand through a voltage source inverter.