A microgrid includes a plurality of distributed energy resources such as controllable distributed electric generators (104, 106, 108, 110, 112) and electrical energy storage devices (114). A method of controlling operation of the microgrid includes periodically updating a distributed energy resource schedule for the microgrid that includes on/off status of the controllable distributed electric generators (104, 106, 108, 110, 112) and charging/discharging status and rate of the electrical energy storage devices (114) and which satisfies a first control objective for a defined time window, based at least in part on a renewable energy generation and load forecast for the microgrid (200). The method further includes periodically determining power set points for the controllable distributed energy resources (104, 106, 108, 110, 112) which satisfy a second control objective for a present time interval within the defined time window, the second control objective being a function of at least the distributed energy resource schedule for the microgrid (210).