The contribution of renewable energy system in terms of climate change plays a vital roles and the energy scarcity in rural areas are the major concern nowadays. Countries where the grid are not stable and has severe load shedding are the common place to integrate the environmental friendly energy system. Microgird is one of the solution to mitgate such problems either for standalone or grid connected systems. In this research the overview of Microgrid systems are discussed. The propblems and challanges are investigated. The control mechanism of them are discussed and how energy management systems can reduce the associates problems related to microgrids are proposes and critically analysed. In this work, a dispatch strategy has been demonstrated to ensure that the system can reduce the use of diesel generators and increase the utilization of renewable energy sources. The strategy also decreases the excess electricity produced by the system while ensuring its technical feasibility. The system was simulated with and without storage; the results indicate that the version without a battery is more economically and technically feasible while still meeting the necessary constraints.