A multilevel optimization approach is proposed to connect distributed energy, renewable energy and energy storage devices to microgrid. A multilevel architecture system is constructed to reduce the computational complexity and optimize different decentralized microgrids, different decision makers and multiple objectives construction. This architecture system connects the multilevel structure system to the system control network of smart grids, the upper decision level of multilevel architecture system has a set of fixed parameter (reference values) function, and adapts to the lower decision level by a specific structure of the control strategy. On the basis of the parameters, each decision maker at the lower level solves its own optimization problem by tracking the reference values provided by the upper level. Software simulation results show that the application of multi-level structure system not only optimizes the running time in the smart grid but also optimizes the power grid energy management and reduces energy consumption.