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This paper proposes a novel hybrid algorithm which is mathematically modelled by amalgamating the superior features of recently developed Grey Wolf Optimizer (GWO), Sine Cosine Algorithm (SCA), and Crow Search Algorithm (CSA). Researchers have already implemented the aforementioned three algorithms and obtained superior quality results for solving diverse optimization problems. The novel hybrid Variegated GWO Algorithm (VGWO) developed in this proposed research work is initially realized and validated for solving IEEE CEC-C06 2019 benchmark functions. Thereafter, the proposed VGWO is utilized as an optimization tool to solve three emerging and complex power system optimization problems which includes energy management of microgrid systems operated in both islanded and grid-connected mode, dynamic economic emission dispatch and reactive power planning (RPP) problem. A comparative analysis of the proposed VGWO approach with other established metaheuristics is undertaken for each optimization problem. Numerical results show that the novel hybrid VGWO algorithm outperformed an ample number of optimization techniques in providing better quality solutions. The proposed hybrid algorithm yielded a 36.93% reduction in active power loss and 36.80% reduction in operating cost with respect to base case condition for RPP problem. Likewise while solving microgrid energy management problems 9–30% savings was realized in the generation cost compared to the ones mentioned in literature. The capability of handling many complex constraints within a minimum amount of computational time to provide consistently best solutions prioritize the proposed hybrid algorithm among its kinds. Statistical analysis validates the authenticity and viability of the proposed algorithm. [ABSTRACT FROM AUTHOR]