Abstract The operation of a microgrid (MG) is gradually being developed in order to achieve greater reliability, higher power quality, lower gas emissions, and reduced total costs. Renewable energy systems (RESs) and energy storage systems (ESSs) are widely used around the globe to reduce the pollution produced by traditional power plants and minimize operational energy costs. ESSs help the various forms of renewable distributed generation to be integrated in the MG with a high penetration level. ESSs also develop MG reliability, increase power quality, smooth the uncertainty of RESs, handle load change, change the peak load, develop a control system, and regulate the frequency and voltage systems. This chapter provides an overall description and a comprehensive study of MG energy management strategies, including the objective function of an MG, MG constraints, and mode operation of the MG as well as showing the impact of the optimal allocation of ESS on the MG operation. This chapter begins by presenting a statistical analysis of the research in the field of MGs, renewable energy, ESSs, energy management of MGs, and optimal allocation of ESS. It then discusses energy management-solutions for MGs in isolated mode and interconnected mode, and finally investigates the impact of optimized ESS location and capacity on the energy management for the MGs.