Modern microgrids have significant challenges in terms of stability and power quality when intermittent renewable energy sources, particularly solar photovoltaics, are integrated. In order to overcome this, we offer a strong framework for energy management and optimization that is intended for grid-connected hybrid (PV-Battery) systems that are subjected to significant disruptions. The main innovation is a Battery Energy Storage System (BESS) powered by a dynamic power-smoothing algorithm that actively counteracts both local demand spikes and abrupt reductions in solar irradiation. The system effectively controls frequency and preserves voltage stability at the Point of Common Coupling (PCC) by using a real-time control approach. Numerical models that replicate important events, such as grid failures and sudden weather changes, were used to verify the arrangement. According to the statistics, our approach effectively reduces peak demands while maintaining high power quality and securely keeping the Total Harmonic Distortion (THD) within the IEEE 1547 standard’s 5% limit. In the end, our approach offers a workable way to construct more resilient grids during the current energy transition.
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