In this paper, we present a distributed economic dispatch (ED) strategy based on projected gradient and finitetime average consensus algorithms for smart grid systems. Both conventional thermal generators and wind turbines are taken into account in the ED model. By decomposing the centralized optimization into optimizations at local agents, a scheme is proposed for each agent to iteratively estimate a solution of the optimization problem in a distributed manner with limited communication among neighbors. It is theoretically shown that the estimated solutions of all the agents reach consensus of the optimal solution asymptomatically. This scheme also brings some advantages, such as plug-and-play property. Different from most existing distributed methods, the private confidential information, such as gradient or incremental cost of each generator, is not required for the information exchange, which makes more sense in real applications. Besides, the proposed method not only handles quadratic, but also nonquadratic convex cost functions with arbitrary initial values. Several case studies implemented on six-bus power system, as well as the IEEE 30-bus power system, are discussed and tested to validate the proposed method.