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In order to make up for the deficiencies of centralized power production and distant transmission, microgrids become a hot topic of research in distributed energy systems in recent years. And they will play an important role during development of sustainable energy, electric utility deregulation and restructuring efforts. Microgrids, which include various distributed energy resources and controllable loads, can operate and be dispatched flexibly. They could operate in both gridconnected and stand-alone modes. Based on steady state characteristics of distributed energy resources, this paper proposes an optimization and dispatch model of microgrids in centralized control and objective functions with minimizing the cost of operation or depreciation, and maximizing environmental or comprehensive benefit. The model is validated by studying a specified case with different interactive operational control strategies, objective functions and power price.

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