Microgrid is an important part of smart grid, and the system management method of microgrid has been widely concerned. In this paper, a system modeling method based on energy circuit is proposed to model the microgrid system structure. The branches are represented by logic variables and state variables. The model of microgrid can be easily generated on the computer by inputting the parameters of nodes and branches. Then, a method of demand side response (DSR) based on probability is proposed to solve the problem of uncertain load estimation. On this basis, the DSR method is applied to energy management strategy (EMS), in which the return coefficients of loads are changed. The simulation results show that the modeling method is effective and feasible for the energy management system of microgrid. The EMS including demand side response can significantly reduce the start‐up time of diesel generator (DSL) and the operation cost of microgrid. © 2022 Institute of Electrical Engineers of Japan. Published by Wiley Periodicals LLC.