substation, respecting all the system and component requirements and standards. The South Campus system operation (Layer 4) performs the following functions: xx Monitoring: The MMS has a supervisory control and data acquisition system monitoring the system conditions. xx Resource optimization: Resources are optimized to achieve a variety of operational objectives such as: ■■ minimizing cost and environmental impacts ■■ managing to contracts (the power purchase agreement and net metering) ■■ exposing itself as a VPP to participate in utility programs and electricity markets. xx Scheduling: Resources are scheduled optimally for situational awareness or by operator override. xx Dispatch control: Optimal resource set points are deployed in the field. The South Campus external system and analytics (Layer 5) provides the following functions: xx External system economic optimization: Resources are scheduled and optimized to capture market opportunities for the supply of grid services. xx Analytics: Historical data management and reliability/ benefit metrics are provided. Residential Neighborhood Microgrid: North Carolina's Heron's Nest North Carolina Electric Membership Corporation has created the state's first neighborhood microgrid at the new Heron's Utility Connection Small Wind Solar Nest Environmental Village. The community includes 31 homes, each containing highly energy-efficient loads and a 3-kW PV uncontrolled array. It also encompasses a controllable community solar PV array and battery energy storage system as well as controllable community loads. The technology solution includes an MMS, which provides service resilience and reliability as well as operational efficiency. The MMS is also connected to a DERMS solution providing demand-response flexibility during the utility peak-energy use dispatching some of the community loads. The Heron's Nest automation control (Layer 3) executes a number of operation sequences to provide the following functions: xx islanding xx resynchronization xx system shutdown xx system cold start. The Heron's Nest system operation (Layer 4) performs the following functions: xx monitoring xx resource optimization ■■ minimizing cost ■■ exposing the microgrid as a VPP to participate in the utility program. xx scheduling (automated and operator initiated) xx dispatch control. The Heron's Nest external system and analytics (Layer 5) provides the following functions: Battery Storage Diesel Generator Microturbines Critical Load UPS Data Center Critical Office Space Noncritical Absorption Chiller Storage Tank Figure 4. The South Campus microgrid. 96 I E E E E l e c t r i f i cati o n M agaz ine / DECEMBER 2020 Electric Chiller Boiler Air Handler Heat Exchanger