ABSTRACT
This chapter presents an optimal home energy management system (HEMS) algorithm to integrate local distributed energy resource (DER) and battery storage systems in a smart home environment considering customer level and community level objectives. The HEMS is developed for a day-ahead real-time pricing (RTP) coupled with critical peak pricing-based demand response (DR) program, which employs multistage algorithms to optimize the power consumption/generation/storage operations based on signals from an aggregator, customer priority, and preference settings. Rooftop Solar photovoltaic (PV) generation and wind energy generation are the most techno-economically viable options among the DERs and therefore, there is a lot development in effective hybrid solar PV and battery storage systems at residential and small-scale commercial customer's level. The chapter presents a coordinated multistage optimal scheduling model, where a customer can participate in energy trading and also in DR program. It is assumed that home agents will collaborate with aggregator for further economic benefits.
