A considerable amount of research material discussing designs and properties of High Temperature Superconducting Fault Current Limiter (HTS FCL) is available. However, a shortage of research concerning positioning of HTS FCL in power grid is felt. In this paper a feasibility study of HTS FCL positioning in Smart Grid through simulation analysis is carried out. A complete power network (including generation, transmission and distribution) is modeled in Simulink / SimPowerSystems. A generalized HTS FCL is also designed by integrating Simulink and SimPowerSystem blocks. The distribution network of the model has a wind turbine attached to it forming a micro grid. Three phase fault have been simulated along with placing FCL models at key points of the distribution grid. It is observed that distribution grid, having distributed generation sources attached to it, must not have a single FCL located at the substation level. Optimized HTS FCL location regarding the best fault current contribution from wind turbine has been determined through simulation analysis.