This paper deals with implementation of the laboratory-scale microgrid using energy storage system. Also, this paper develops a simulation model of the microgrid with same parameters on the laboratory-scale microgrid using PSCAD/EMTDC. The experimental results show good agreement with the simulation results. This shows the validity of the simulation model. A valve regulated lead acid (VRLA) battery is used to store energy. Energy storage system with fast response is able to maintain power quality of sensitive load within the microgrid.