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For the impact of intermittent resources’ high penetration on the economic dispatch of islanded microgrid,a new economic dispatch method is presented to minimize the overall generating cost for islanded microgrid,considering a cooperative strategy between diesel generator (hereinafter referred to as DE) and battery energy storage system (BESS).The optimum economic operation range of DE and the optimal set-point between DE and BESS are presented in the cooperative dispatch strategy,in which BESS is used fully to enable DE in a lower cost and higher efficient way.The results are analyzed under various operation conditions and also prove the validity of the proposed method.