A power distribution system comprising: a plurality of power generating and energy storage resources operating within a microgrid; a plurality of power consuming loads within the microgrid; a power transmission network coupling the resources to the loads; and a controller in communication with the resources and configured to control operation of the resources within the microgrid when the microgrid is islanded, wherein the controller is operative to: determine an optimal load balance between the plurality of generation assets and energy storage systems via a microgrid optimization module within the controller based on load and renewable generation forecast information; transmit load and generation schedules from the microgrid optimization module to a generation controller that operates the resources in accordance with the schedules; calculate a frequency set point for energy storage resources in the microgrid based on the optimal load balance of the energy storage resources, the energy storage resources' droop settings, the rated power of the energy storage resources, and the frequency of the energy storage resources; and control the frequency set point of the energy storage resources to achieve the optimal load balance; wherein the energy storage resources include several battery energy storage systems (BESS) operating in frequency/voltage (F/V) droop mode; and wherein the frequency set point ( F setpt ) for each BESS is determined based on: F setpt = P desired × Droop bess × F rated P rated + F system wherein F Setpt represents the BESS Frequency set point, F system represents a system frequency, Droop bess represents a droop setting of the BESS, F Rated represents a BESS rated frequency, P desired represents a desired power sharing of the BESS, and P Rated represents a rated power of the BESS. a plurality of power generating and energy storage resources operating within a microgrid; a plurality of power consuming loads within the microgrid; a power transmission network coupling the resources to the loads; and a controller in communication with the resources and configured to control operation of the resources within the microgrid when the microgrid is islanded, wherein the controller is operative to: determine an optimal load balance between the plurality of generation assets and energy storage systems via a microgrid optimization module within the controller based on load and renewable generation forecast information; transmit load and generation schedules from the microgrid optimization module to a generation controller that operates the resources in accordance with the schedules; calculate a frequency set point for energy storage resources in the microgrid based on the optimal load balance of the energy storage resources, the energy storage resources' droop settings, the rated power of the energy storage resources, and the frequency of the energy storage resources; and control the frequency set point of the energy storage resources to achieve the optimal load balance; determine an optimal load balance between the plurality of generation assets and energy storage systems via a microgrid optimization module within the controller based on load and renewable generation forecast information; transmit load and generation schedules from the microgrid optimization module to a generation controller that operates the resources in accordance with the schedules; calculate a frequency set point for energy storage resources in the microgrid based on the optimal load balance of the energy storage resources, the energy storage resources' droop settings, the rated power of the energy storage resources, and the frequency of the energy storage resources; and control the frequency set point of the energy storage resources to achieve the optimal load balance; <EOS>