Abstract: A system includes at least one generator coupled to an island grid, at least one energy storage unit and at least one converter coupled to the at least one energy storage unit and configured to be coupled to the island grid. The system further includes a control circuit configured to cause the at least one converter to transfer power between the at least one energy storage unit and the grid responsive to a change in a load on the island grid to maintain operation of the at least one generator at a predetermined operating point. The at least one generator may include a control system configured to match generator output to the load and the control circuit may be configured to maintain the control system of the at least one generator within a predetermined dynamic response capability limit responsive to the change in the load.