This paper develops the small signal modelling of the storage systems. In order to attain an equalized energy utilisation factor among the high energy density based storage elements, a dynamic exponent based decentralized state of charge (SoC) management scheme is integrated. Moreover, due to the low relative inertia of the microgrid, the system may undergo a power imbalance condition with the varying generation and demand. Thus, to improve the system inertia a high power dense storage element is incorporated into the system. A fuzzy-based decentralized state of power management scheme (SoP) is proposed in the study. To ensure the robustness of the proposed SoC and SoP management scheme, the microgrid is extensively tested under the dynamically varying generation and load scenarios. The system stability of the proposed approach is further cross-verified through the Nyquist stability criterion.