Apparently, battery energy storage (BES), intelligent protection and power quality are considered as independent issues. These three factors can be interlinked effectively for control of microgrid through automated demand side management (ADSM). In this context, the proposed approach may change the conventional way for microgrid operation and control giving priority to the power quality issues considering protection and BES systems. The control algorithm is implemented through fuzzy inference system based power quality monitoring index and ADSM. As a part of intelligent protection, logic table for circuit breaker (CB) coordination has been developed without/with backup for relay devices to provide ADSM. The model has been simulated using Matlab-software and validated experimentally using OPAL-RT OP4510 real-time simulator through the assessment of power quality-related parameters such as voltage, frequency, total harmonic distortion and power factor. The results are found satisfactory showing the feasibility of the proposed microgrid model.