The present work includes the selected papers of the Third International Conference on Power and Energy Systems Engineering (CPESE 2016). The CPESE 2016 is a global event focused on Power and Energy Systems Engineering. The conference is organized and hosted by South Asia Institute of Science and Engineering (SAISE), Kyushu Institute of Technology, and Kitakyushu City. It is sponsored by the Kitakyushu City and the Institute of Electrical Engineers of Japan (IEEJ). This event will be held during September 8-10, 2016, in Kitakyushu, Japan. Nowadays, power grids are experiencing their greatest ever changes and challenges due the shift to smart and micro grids, renewable energy sources, new monitoring technologies, and the rapidly changing role of power networks. This conference will bring together the latest discoveries of researchers with the experiences of leading industry experts and engineers over the world. The proceedings will be a forum for participants to discuss state-of-the-art innovations in power and energy technologies and will feature plenary and panel sessions as well as technical paper presentations and poster sessions.