Economic growth is one factors driving the need for expansion of the electricity system. However, power systems in some isolated areas are found to be unreliable because of some issues such as the transportation of components of the power system and fuel. The potential of local renewable energies can be the alternative for the development of power plants in these areas. However, most renewable energy sources produce relatively unstable voltage and power due to fluctuating primary energy sources conditions. This study proposes a hybrid generation system that utilizes the potential of local RES such as a PV system and a wind turbine generator, combined with existing diesel generators and equipped with a battery energy storage system. Simulations are carried out to observe and study the dynamic response of each component in response to the system frequency using PowerFactory software. The result shows the proposed hybrid system still operate well and stably due to the dynamic performance and coordination control between diesel generators and the battery energy storage system. © Published under licence by IOP Publishing Ltd.