Coordinated smart home energy sharing with a centralized neighbourhood energy management

Abstract

This paper presents a centralized neighbourhood energy management with coordinated smart home energy-sharing model for neighbourhood smart homes, which are integrated with in-house renewable energy resources and energy storage systems. The main aim of this neighbourhood energy management model is to minimize the aggregated electricity bill of all smart home consumers in the neighbourhood area by increasing the utilization of local renewable energy generation. The effective combination of time of use pricing, feed-in-tariff scheme and fixed incentive method is considered in this model to encourage the more electricity transactions among the neighbourhood smart homes. A group of ten smart homes with different level of renewable energy integration and load profiles is considered as a test system to determine the performance of the proposed neighbourhood smart home energy management model. The simulation results show that the centralized neighbourhood coordinated smart home energy management model can provide significant economic benefits to all smart home consumers in the neighbourhood area, when compared to the without neighbourhood power-sharing case. From the results, it is noted that all smart homes together get 56.23% of cost savings in a day with the proposed model when compared to the baseline model. Finally, an economic analysis has also done in this paper to investigate the capital investment benefits of all smart home consumers in neighbourhood area. From the economic analysis, it is clearly noticed that with the proposed model the annual profits of all smart homes (SHs) in the neighbourhood area are improved by 54.48% for SH1, 59.88% for SH2, 85.03% for SH3, 41.55% for SH4, 30.68% for SH5, and 34.70% for SH6 respectively when compared to without neighbourhood energy sharing concept.