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Voltage drop and energy loss issues in remote areas will degrade the reliability of power system when loads are subsequently increased. This paper aims to design a PV-Battery microgrid system to enhance the performance of the 22 kV radial distribution system of the Sichang island, which is situated remotely in the Gulf of Thailand. The locations and capacities of the PV-Battery microgrid systems were determined based on voltage regulation and limited feeder rating following the Provincial Electricity Authority (PEA) standard and projected energy loss reduction for increasing load demand within the next twenty years. The DigSILENT Power Factory were used for the simulation. From survey and simulation results, these locations are technically suitable for installation. A capacitor bank system should be installed at the end of power-line branch with the suitable sizing of 1.5 MVar. A microgrid PVBattery system should be installed with a PV-array of 1.5 MWp at the cape area and batteries of 1.08 MWh at the PEA operator center, and batteries of 1.44 MWh and 5.28 MWh at the starting point of the island’s distribution line.