*1.1. Research Motivation*

Various research has been conducted on optimum component sizing using various optimization techniques to evaluate a cost-effective hybrid microgrid configuration such as PV/biodiesel/BESS using simulated annealing [37], Supercapacitors/BESS/WT/Fuel using Non-dominated Sorted Genetic Algorithm [6], diesel/PV/WT using multi-objective self-adaptive differential evolution algorithm [38], PV/WT/BESS using cuckoo search algorithm [39], MOPSO [40], GA-PSO and MOPSO [41], and more. However, it is observed from the research trends in the literature that in order to ascertain the maximum techno-economic benefits for any microgrid configuration and investment, the flexibility requirements of the system must be factored into its design, i.e., reliability based on adequate system flexibility provision must be prioritized alongside the planning and capacity sizing. Hence, in this study, a multi-objective optimal planning for an isolated microgrid that introduces the cost of flexibility managemen<sup>t</sup> using ESS and DRP is investigated. The multi-objective design problem is formulated and solved using the Multi-Objective Particle Swarm Optimization (MOPSO) algorithm in MATLAB environment.
