A local power generation system generates DC voltage at an inverter input, modulated to generate an AC power signal to a load. The inverter input voltage may be obtained from an engine generator, providing a rectified AC power signal. An energy storage device helps maintain DC voltage at the inverter input when load power draw increases or during engine startup or acceleration, for example, until the engine accommodates increased power demand. The system may also be used in an uninterruptible power supply (UPS), in which the load draws power from a utility-provided AC power source until a fault condition appears. When the fault condition appears, the load switches its power draw from the utility-provided AC power source to the inverter output. The energy storage device is charged through a bidirectional DC-to-DC converter and through an inverter operating in rectifier mode to rectify a utility-provided AC power signal.