Burning fossil fuels results in more emissions than generating electricity from renewable sources. The transition to renewable energy from fossil fuels, which currently produce the majority of emissions, is essential to preventing the climatic disaster. Hybrid energy generation systems are still in their infancy. It is envisaged that future technology developments would lead to greater application and more economical goods. There will be more standardised designs, which will make it easier to select a system that is suitable for a certain application. The components will communicate more with one another. As a result, control, monitoring, and diagnosis will be made simpler. The hybrid energy system (HES), also known as hybrid power, is expected to be the long-term power solution for microgrid (MG) systems. This study compares and contrasts several theories and conventional approaches to controlling HRES’s control and energy consumption. A successful energy management strategy has been created using a variety of methods and procedures. The effectiveness of an EMS is determined by its control architecture and the solution approach used; common topologies include hierarchical, decentralised and centralised EMS. Supply side management and demand side management, two EMS components, will be discussed later. The three EMS control architectures are examined in this section. In order to determine the most practical and dependable solution with the lowest Net present cost (NPC), COE and realistic environmental consequences, various hybridisation cases of a PV panel, wind turbine, battery storage and diesel generator are designed, analysed and compared using DSM. The results of taking into account DSM indicated a reduction in CO2 emissions of 25%, NPC emissions of 14.8%, COE emissions of 14% and an increase in RF emissions of 8.5%. Two fundamental metrics – the DSM Quality Index for technical benefits and the DSM Appreciation Index for economic advantages – are used to assess the technical and economic benefits of DSM.