A computer-implemented method for controlling a distributed energy storage system (ESS) communicating with one or more microgrids is presented. The method includes assigning, via the processor, a weight to a first objective function pertaining to minimizing demand charge (DC) cost, assigning, via the processor, a weight to a second function pertaining to maximizing photovoltaic (PV) utilization, receiving historical demand profiles including demand data and historical PV profiles including PV data, and determining ESS power and capacity. The method further includes employing a multi-objective DC cost and PV utilization optimization module to obtain a plurality of optimal solutions by concurrently processing the assigned weights of the first and second objective functions, the historical demand and PV profiles, and the ESS power and capacity.
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