A system for controlling a microgrid system comprising a plurality of microgrid assets, comprising: a processor-based control system configured to: receive information via a communications pathway from the plurality of microgrid assets; identify one or more errors associated with an operation of the microgrid system, the errors comprising at least one of unobservability or uncontrollability of a first one of the plurality of microgrid assets; respond to the one or more identified errors with one or more actions, wherein each identified error from the one or more identified errors is associated with at least one action from the one or more actions; transfer from an auto-mode into an advisory mode upon identification of an error within a given set of errors; generate an optimal dispatch schedule comprising one or more control signals configured to control the microgrid operation to improve an operational efficiency of the microgrid system, wherein the optimal dispatch schedule is based at least in part on the response to the one or more identified errors; determine if the control system operates in the auto-mode or the advisory mode; deliver at least a portion of the optimal dispatch schedule via the communications pathway to processor-based local controllers associated with the plurality of microgrid assets if the control system operates in the auto-mode, wherein an operation of the processor-based local controllers is based at least in part on the portion of the optimal dispatch schedule; log the optimal dispatch schedule in a memory and not communicate the optimal dispatch schedule to the local controllers if the control system operates in the advisory mode. receive information via a communications pathway from the plurality of microgrid assets; identify one or more errors associated with an operation of the microgrid system, the errors comprising at least one of unobservability or uncontrollability of a first one of the plurality of microgrid assets; respond to the one or more identified errors with one or more actions, wherein each identified error from the one or more identified errors is associated with at least one action from the one or more actions; transfer from an auto-mode into an advisory mode upon identification of an error within a given set of errors; generate an optimal dispatch schedule comprising one or more control signals configured to control the microgrid operation to improve an operational efficiency of the microgrid system, wherein the optimal dispatch schedule is based at least in part on the response to the one or more identified errors; determine if the control system operates in the auto-mode or the advisory mode; deliver at least a portion of the optimal dispatch schedule via the communications pathway to processor-based local controllers associated with the plurality of microgrid assets if the control system operates in the auto-mode, wherein an operation of the processor-based local controllers is based at least in part on the portion of the optimal dispatch schedule; log the optimal dispatch schedule in a memory and not communicate the optimal dispatch schedule to the local controllers if the control system operates in the advisory mode.