Optimization-based Energy Management System to Minimize Electricity Bill for Residential Customer

Abstract

In order to meet the increasing growth of energy demand, incorporation of renewable resources appears to be a viable solution. With the increase of renewable integration, a big challenge is to handle these intermittent resources in a smart way. An effective approach can be the optimal management of energy of Solar PV panels and energy storage besides the main utility. In this research, an optimization method is employed to manage variable load demand to minimize the overall electricity bill of residential house over a period of 24 hours. Optimization approach schedules the energy resources and decides, when to use grid or cut it off, depending on the availability of solar power, state-of-charge (SOC) of ESS and dynamic electricity tariffs. The impact of using smart energy management system (EMS), is tested by executing three different plausible cases. To verify and validate the real time behaviors of the model, optimization results are compared with the static electricity tariffs and a substantial cost reduction is observed.