Microgrid implementation often lacks economic and environmental efficiencies due to sub-optimal configuration and operation. The current study aims to explore the optimal configuration and operational strategies for a microgrid system with maximum life cycle economic and environmental co-benefits. This study was inspired by a real microgrid optimization need for Shoals Marine Laboratory, a seasonal marine teaching and research field station on Appledore Island, Maine. A system dynamic model was developed to simulate the microgrid operation, and a multi-criteria analysis was performed based on diesel electricity generation, equivalent annual costs, and carbon footprint under various system sizing and operation scenarios. This study found that an effective battery capacity of 120–165 kWh (400–550 kWh actual with 30% depth of discharge) and a solar capacity of 85–105 kW can effectively minimize all three objectives under an average daily demand of 265 kWh during the study period. Additionally, implementing an alternative system operation strategy can lead to a 12% reduction in diesel electricity generation.
