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As the development of energy market and the interest for new energy recourses such as wind energy and solar energy, energy management system of distributed generation (DG) becomes significant for the stability and economic operation of the DG system. This paper introduced a basic structure of DG system and illustrated the principle of power forecasting using neutral network. Finally a novel energy management system of DG is proposed to realize the economic operation. The proposed system determines the operation mode according to the forecasted output power and the state of the battery. The fuzzy logic is adopted to control the power flow for the sake of the optimization of operation costs.