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Microgrids are an increasingly popular solution to provide energy resilience in response to increasing grid dependency and the growing impacts of climate change on grid operations. However, existing microgrid models do not currently consider the uncertain and long-term impacts of climate change when determining a set of design and operational decisions to minimize long-term costs or meet a resilience threshold. In this paper, we develop a novel scenario generation method that accounts for the uncertain effects of (i) climate change on variable renewable energy availability, (ii) extreme heat events on site load, and (iii) population and electrification trends on load growth. Additionally, we develop a two-stage stochastic programming extension of an existing microgrid design and dispatch optimization model to obtain uncertainty-informed and climate-resilient energy system decisions that minimizes long-term costs. Use of sample average approximation to validate our two case studies illustrates that the proposed methodology produces high-quality solutions that add resilience to systems with existing backup generation while reducing expected long-term costs. • We generate climate change-informed load and renewable energy production profiles. • We extend a design-and-dispatch problem to a two-stage stochastic program. • Cases with high variation in annual renewable output show the methodology's value. [ABSTRACT FROM AUTHOR]

Lack of access to reliable energy is a major concern for countries in sub-Saharan Africa. The national grids are unable to consistently satisfy demand. Therefore, users turn to distributed generation systems in the form of back-up generators. However, such systems are usually designed based on a rule of thumb. We employ a mixed-integer linear programming model that considers several options such as renewable energy, combined heat and power, and storage technologies, in addition to those on-site, to provide optimal design and dispatch decisions that minimize total cost. We apply this model to a case study for a hospital in South Africa, considering its need for reliable electricity in light of multiple outages that might occur over the course of a year, as well as its high heating and cooling loads. Our results show that optimal design and dispatch decisions for the distributed generation system address reliability challenges, regardless of the time at which they occur. And, these solutions yield millions of dollars in savings, suggesting that technologies such as the absorption chiller may be overlooked in typical designs; its integration can reduce demand charges even in the absence of combined heat and power. We show that total cost is most sensitive to changes in site electrical demand, followed by capital cost, fuel cost, photovoltaic production, and monthly demand charges; changes in fuel cost primarily affect system sizes of combined heat and power and the absorption chiller, while photovoltaic system size is more sensitive to the changes in capital and fuel costs, photovoltaic resource availability, and hourly electrical demand. Finally, an outage simulator demonstrates the ability of our optimized system to sustain with no interruptions in power five-hour outages with probability 1.0 and ten-hour outages with probability 0.65, significant improvements over 0.5 and 0.0, respectively, under a business-as-usual case. • We employ a mixed-integer program that considers distributed energy resources. • We apply this model to a case study for a hospital in South Africa. • Solutions yield millions of dollars in savings over the planning horizon. • Total cost is most sensitive to changes in capital cost, followed by fuel cost. • The optimized system can sustain operations with no interruptions in power. [ABSTRACT FROM AUTHOR]