AbstractIn this paper, an energy storage system (ESS), solar photovoltaic (SPV) and wind‐driven self‐excited induction generator (SEIG) is being used to establish an autonomous microgrid (MG). A variable gain controller based improved phase locked loop (VGC‐IPLL) is implemented to detect phase angle and generate unit templates for implementing a power quality control scheme in an autonomous MG. This controller enables the system adaptability to input frequency deviations and quick response with reduced steady state error. The novelty of this work is the implementation of VGC‐IPLL based controller in MG which automatically varies the gain according to variation in error. An incremental conductance (IC) based peak power point tracking technique is implemented to harness peak power from an SPV. Further, An ESS is interfaced at dc link of the voltage source converter (VSC) to maintain the power equilibrium between the renewable energy sources (RES's) and the unbalanced load. A bi‐directional controller (BDC) provides dc link voltage regulation and manages the charging/discharging mode of an ESS. Moreover, an ESS provides real/reactive power support through VSC during the intermittent condition of RES's and consumes the unused power during light load conditions. The proposed control with VSC provides multi‐function such as harmonics abatement, real/reactive power support, regulation of dc link voltage, load balancing and minimizes the power quality issues of autonomous MG.