Power Electronics Based Energy Management System with Storage This paper demonstrates the functionality of a power electronics based energy management system (EMS). The EMS includes batteries and a digitally controlled single phase voltage source inverter (VSI) which can be controlled as a current source or a voltage source depending on the status of the AC grid and the user’s preference. The EMS guarantees that the critical loads are powered when the AC grid fails; in which case the VSI is controlled as a voltage source. It also accomplishes peak power control by supplying battery power to the local loads while they are powered by the AC grid if the loads get large. The electricity cost savings accomplished by peak shaving are estimated. The EMS functionality is demonstrated by experimental measurements on a laboratory prototype. The control architecture and logic embedded in the EMS are discussed in detail.