The rapid growth of grid integrated renewable energy (RE) sources resulted in development of the hybrid grids. Variable nature of RE generation resulted in problems related to the power quality (PQ), power system reliability, and adversely affects the protection relay operation. High penetration of RE to the utility grid is achieved using multi-tapped lines for integrating the wind and solar energy and also to supply loads. This created considerable challenges for power system protection. To overcome these challenges, an algorithm is introduced in this paper for providing protection to the hybrid grid with high RE penetration level. All types of fault were identified using a fault index (FI), which is based on both the voltage and current features. This FI is computed using element to element multiplication of current-based Wigner distribution index (WD-index) and voltage-based alienation index (ALN-index). Application of the algorithm is generalized by testing the algorithm for the recognition of faults during different scenarios such as fault at different locations on hybrid grid, different fault incident angles, fault impedances, sampling frequency, hybrid line consisting of overhead (OH) line and underground (UG) cable sections, and presence of noise. The algorithm is successfully tested for discriminating the switching events from the faulty events. Faults were classified using the number of faulty phases recognized using FI. A ground fault index (GFI) computed using the zero sequence current-based WD-index is also introduced for differentiating double phase and double phase to ground faults. The algorithm is validated using IEEE-13 nodes test network modelled as hybrid grid by integrating wind and solar energy plants. Performance of algorithm is effectively established by comparing with the discrete wavelet transform (DWT) and Stockwell transform based protection schemes.