Microgrids have emerged as a pivotal solution in the quest for efficient, resilient, and sustainable energy systems. Comprising diverse distributed energy resources, microgrids present a compelling opportunity to revolutionize how we generate, store, and distribute electricity, while simultaneously reducing carbon footprints. This paper proposes an optimal battery energy storage system (BESS) management scheme, along with capacitor placement for reactive power (Q)-compensation, and scheduling for the purpose of a renewable-based microgrid’s loss minimization. The proposed model evaluates the impact of BESS management on energy efficiency and analyzes how optimal scheduling of BESS influences system losses. Furthermore, it investigates the coordinated planning and operation of active assets within the microgrid, such as controllable capacitor banks, in enhancing overall efficiency. The model is formulated as a mixed-integer second-order cone programming (MISOCP) problem which is solved for both deterministic and stochastic generation and consumption data. The proposed model is tested on a 21-bus microgrid comprising photovoltaic and hydropower energy resources, and the efficacy of the model is approved by several case studies. The simulation results show that the proposed method can reduce microgrid energy losses by approximately 12 percent using the deterministic approach and around 14 percent with the stochastic approach.