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The German Government set itself ambitious targets for energy and climate policy with the introduction of an Energy Concept in 2010. In order to enable the implementation of a large scale renewable energy supply, smart grids are needed to manage the high intermittency of renewable energy sources. This study investigates the possible components, design and prospects of creating a sustainable, renewable energy system with such a smart grid. This investigation is conducted by making use of the EnergyPlan model. The analysis methodology includes hour-by-hour computer simulations leading to the structure of a smart grid capable of balancing energy supply and demand in Germany. In the simulation, various state-of-the-art technologies, such as electric cars, CHP system, heat pumps, electrolysers, Power-to-Gas and CCS are used. The analysis is build upon three different renewable energy usage scenarios, projecting the state of the German energy grid up to 2050.