Distributed Optimization Framework for Energy Management of Multiple Smart Homes With Distributed Energy Resources

Abstract

This paper proposes a distributed optimization algorithm for scheduling the energy consumption of multiple smart homes with distributed energy resources. In the proposed approach, the centralized optimization problem for home energy management is decomposed into a two-level optimization problem, corresponding to the local home energy management system (LHEMS) at the first level and the global home energy management system (GHEMS) at the second level. The controllable household appliances (e.g., air conditioner and washing machine) are scheduled in the LHEMS within the consumer’s preferred appliance scheduling and comfort level, while the energy storage system and power trading between households are scheduled in the GHEMS. In the simulation study, the proposed distributed algorithm shows almost equivalent performance to the centralized algorithm in terms of the electricity cost and the consumer’s comfort level. The impact of different network topologies on the proposed algorithm is also analyzed, and the result provides insight into the selection of the optimal network configuration in view of the consumer’s electricity cost saving.