This study aims to review the potential benefits of peak load shaving in a microgrid system. The relevance of peak shaving for a microgrid system is presented in this research review at the outset to justify the peak load shaving efficacy. The prospective benefits of peak shaving in microgrid systems, including technological, economic, and environmental advantages, are thoroughly examined. This review study also presents a cost–benefit numerical analysis to illustrate the economic viability of peak load shaving for a microgrid system. Different peak shaving approaches are briefly discussed, as well as the obstacles of putting them into practice. Finally, this review study reveals some potential future trends and possible directions for peak shaving research in microgrid systems. This review paper lays a strong foundation for identifying the potential benefits of peak shaving in microgrid systems and establishing suitable projects for practical effectuation.

Peak load reduction is one of the most essential obligations and cost-effective tasks for electrical energy consumers. An isolated microgrid (IMG) system is an independent limited capacity power system where the peak shaving application can perform a vital role in the economic operation. This paper presents a comparative analysis of a categorical variable decision tree algorithm (CVDTA) with the most common peak shaving technique, namely, the general capacity addition technique, to evaluate the peak shaving performance for an IMG system. The CVDTA algorithm deals with the hybrid photovoltaic (PV)—battery energy storage system (BESS) to provide the peak shaving service where the capacity addition technique uses a peaking generator to minimize the peak demand. An actual IMG system model is developed in MATLAB/Simulink software to analyze the peak shaving performance. The model consists of four major components such as, PV, BESS, variable load, and gas turbine generator (GTG) dispatch models for the proposed algorithm, where the BESS and PV models are not applicable for the capacity addition technique. Actual variable load data and PV generation data are considered to conduct the simulation case studies which are collected from a real IMG system. The simulation result exhibits the effectiveness of the CVDTA algorithm which can minimize the peak demand better than the capacity addition technique. By ensuring the peak shaving operation and handling the economic generation dispatch, the CVDTA algorithm can ensure more energy savings, fewer system losses, less operation and maintenance (O&M) cost, etc., where the general capacity addition technique is limited.

This study aims to review the energy management of microgrids with a structured focus on residential, commercial, and industrial applications. Building on early optimization and control strategies, this study synthesizes advances in forecasting, uncertainty management, computational intelligence, and digital twin integration. Particular attention is given to multi-energy coupling through storage technologies, including hydrogen and thermal pathways, along with life cycle, trilemma, and sustainability considerations. Sector-specific energy management system (EMS) strategies are compared in terms of objectives, methods, and implementation challenges, highlighting both converging and unique requirements across application domains. Cross-sectoral challenges, such as interoperability, cyber-security, resilience valuation, and policy gaps, are analyzed, and emerging research directions, including artificial intelligence (AI)-driven optimization, hierarchical and multi-agent frameworks, and hydrogen-enabled autonomy, are outlined. This review aims to equip researchers, practitioners, and policymakers with a consolidated reference on microgrid EMS, bridging technical innovation with sustainable and resilient energy transitions.

In this paper, an optimization approach for designing a hybrid renewable energy system with zero load rejection is presented for a specific location in Malaysia. The proposed renewble energy system includes photovoltaic system, gas turbine generator and battery bank. The aim of the optimization process is to design the system with a loss of load probability that is less than 1%. An improved numerical algorithm is proposed in this paper. Moreover, a comparison between electrification options, including the existing gas-turbine-based generator (existing system), electricity grid and the proposed system, is presented in terms of the annualized total life-cycle cost. The results show that the proposed system can reduce the annual running cost by USD 2.1 million, while the electricity grid connection option can reduce the annual cost by USD 1.16 million as compared to the existing gas-turbine-based generator. In addition to this, the proposed optimization algorithm provides a reliable power system with zero load rejection based on simulation results.