For smart grid assessment one needs to simulate varieties of components in different software environments. However, the existing simulation tools are domain oriented and cannot fulfil this need natively. Therefore, a smart grid simulation environment has to be established with accordingly accurate models for intra and inter-domain elements as well as interfaces and framework for coordination of those models in a holistic scenario. This paper presents part of the development of this smart grid simulation environment by implementing co-simulation interface for PSCAD using the mosaik framework based on functional mock-up interface (FMI). This co-simulation interface is tested using a modified dynamic model of IEEE 9 bus test system simulated in PSCAD while the wind turbine controller is simulated in MATLAB/Simulink. The results show a significant advantage over alternative methods in terms of a reduction in simulation runtime and compatibility with different simulation environments.