This research proposes an efficient reliability modeling and simulation methodology in power systems to include photovoltaic units, wind farms and storage. Energy losses by wake effect in a wind farm are incorporated. Using the wake model, wind shade, shear effect and wind direction are also reflected. For solar modules with titled surface, more accurate hourly photovoltaic power in a specific location is calculated with the physical specifications. There exists a certain level of correlation between renewable energy and load. This work uses clustering algorithms to consider those correlated variables. Different approaches are presented and applied to the composite power system, and compared with different scenarios using reliability analysis and simulation. To verify the results, reliability indices are compared with those from original data. As the penetration of renewables increases, the reliability issues will become more important because of the intermittent and non-dispatchable nature of these sources of power. Storage can provide the ability to regulate these fluctuations. The use of storage is investigated in this research. To determine the operating states and transition times of all turbines, Monte Carlo is used for system simulation in the thesis. A conventional power system from IEEE Reliability Test Systems is used with transmission line capacity, and wind and solar data are from National Climatic Data Center and National Renewal Energy Laboratory. The results show that the proposed technique is effective and efficient in practical applications for reliability analysis.