Abstract: The present disclosure envisages a hybrid energy storage system (HESS) for power management of a microgrid. The system includes a plurality of renewable energy sources (RES), a plurality of power converters, a DC bus and a power management controller. Each RES is configured to generate a current IRES. Each RES is connected to a power converter. Each power converter generates a DC voltage Vdc from the current IRES. The DC bus is connected to the plurality of power converters. The DC bus receives the DC voltage Vdc. The power management controller controls a battery energy storage system (BESS) and a supercapacitor energy storage system (SCSS). The BESS includes a battery which is connected to receive the DC voltage Vdc and generate a battery current ibatt. The SCSS includes a supercapacitor which is connected to receive the DC voltage Vdc and generate a supercapacitor current isc.