This paper deals with the internal dispatch policy for Hybrid Power Stations (HPS) consisting of renewable energy source (RES) based generation and storage facilities, operating in isolated island power systems in a coordinated manner to provide dispatchable power. Objective of the proposed dispatch method is the maximization of HPS revenues during real time operation, while avoiding deviations from the dispatch orders (DOs) issued by the System Operator (SO). DOs can be met either by RES production directly injected to the grid or by the storage facilities of the station. A Model Predictive Control (MPC) method is implemented to regularly update the internal dispatch decisions for HPS components, relying on an optimization problem built upon the Mixed Integer Linear Programming (MILP). In the proposed formulation the technical and operating constraints of the examined HPS configuration are taken into consideration, while a variable time resolution technique is also adopted to reduce computational complexity and achieve feasible solutions within acceptable time limits.