This paper deals with modelling of a photovoltaic power plant in combination with a battery energy storage system and their cooperation in order to better renewable energy utilization at local level. In this paper, the model of grid on a hybrid system that is formed by the battery energy storage system, a photovoltaic power plant, a utility grid and a small commercial load is proposed. Battery energy storage system based on lithium ion technology is connected by a DC-DC bidirectional power converter to the DC bus together with a photovoltaic power plant. Avltage source converter is used for conversion of DC to AC power. Utility grid and commercial load are connected to the AC side. Modeling of a hybrid system and simulation of the system’s behaviour during a random day of the year was performed in Matlab/Simulink environment employing SimPowerSystems toolbox. The results show the cooperation of the battery energy storage system and the photovoltaic power plant using system control in order to satisfy load requirements.