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A novel energy management system for a renewable based microgrid is proposed. It provides on-line set points for each generation unit, operation modes for a water supply system, and signals for consumers based on a demand side management mechanism. The smart microgrid is composed of photovoltaic panels, a wind turbine, a diesel generator, a battery bank, and a water supply system. The energy management system (EMS) minimizes the operational costs while supplying the water and electric load demands. It considers a two days ahead prediction of the weather conditions. Also, a neural network for a two days ahead electric consumption forecasting is designed. The system is implemented and tested using a real data set from a reference location. Results show the economic sense of the set points and management, for a practical implementation of the system in a specific location in Chile.