I. Introduction
Distributed energy resources (DERs) such as solar PV, wind and combined heat and power (CHP), provide an alternative solution that can offer reduction of emissions, increased reliability, and cost savings if operated optimally. Solar PV and wind power virtually have a zero-cost source of fuel, but are variable and less predictable. Without storage capabilities available, these resources are limited and cannot serve as the only source of power. Fossil fuel generators and connection to the grid provide a controllable source of power to balance renewable generation and demand at all times. These resources form an integrated thermal and electrical microgrid that can be operated locally, with a point of common coupling with the larger electricity grid. By scheduling these resources optimally, the cost of energy to the customer can be reduced, and the net load seen by the electricity providers can decrease as well.