A power generation system includes a renewable power source for producing source power; a source side converter for converting the source power to converted DC power; a source side controller for driving the converted DC power towards a maximum power point; a DC link for receiving the converted DC power; a grid side converter coupled to the DC link for converting DC link power from the DC link to AC output power for a grid; a grid side controller for controlling the AC output power of the grid side converter to achieve grid interconnection requirements; an electrical energy storage device; an energy storage converter coupling the energy storage device to the DC link; an energy storage controller for controlling the energy storage converter to achieve a desired power balance on the DC link.