Efficient Energy Management For Household Optimization-Based Integration of Distributed Energy Resources in Smart Grid
Efficient Energy Management For Household Optimization-Based Integration of Distributed Energy Resources in Smart Grid
ABSTRACT Energy demand is increasing globally due to the growing human population and progressive
lifestyle. The adequate use of available energy resources, including renewable, contributes to a country’s
economic sustainability and future development. Optimization–based energy management and cost min-
imization plays a significant role in overcoming energy crises in less developed countries. In this paper,
an optimization–based dynamic energy management technique for smart grids is developed based on the
integration of available renewable resources and variable consumer demand, distinctive to underdeveloped
countries. Consumer demand is classified into fixed, flexible, and highly variable based on population
characteristics. In this work, we developed a Dynamic Multiple Knapsack DMKNS algorithm, which
automatically schedules energy provision to various users by optimally accounting for the available resources
(Grid and Renewable). The proposed method provides a low-cost solution by maintaining a constant energy
supply while preserving consumer comfort and grid stability. The simulation results with various intermittent
availability of resources using MKNS show a saving up to 50% for a variable energy demand user. The
proposed method is general and can also be applied to various underdeveloped regions with similar consumer
demand and statistics.
INDEX TERMS Optimization-based energy management, dynamic multiple knapsack, energy storage,
renewable energy system, smart grid.
TABLE 1. User classification. TABLE 3. Comparison of proposed study with existing studies.
estimate models for the load forecast were presented, such as a storage system in overcoming the intermittent nature of
standard autoregressive (AR) and time-varying AR (TVAR). renewable energy resources adds much-needed stability to the
A mutual energy storage and load scheduling with renewable grid. A study shows that a grid, with a storage capability of
incorporation for real-time residential side energy manage- 10% to 1% of its generating capacity is considered to be more
ment using the Lyapunov optimization technique is pre- reliable and stable [28]. In [31] a critical look at dynamic
sented [21]. multi-dimensional knapsack problem generation is presented.
Similarly, a home energy management scheme using a Similarly, the dynamic programming approach to solve
genetic algorithm is presented in [22]. Particle Swarm Opti- real-world applications of the multi-Objective unbounded
mization (PSO) is a cloud-built optimization method, which knapsack problem is presented in [32].
is used for minimizing energy cost with the contribution of
consumer’s demand [23]. Contrary to the genetic algorithm, III. MATERIALS AND METHODS
the PSO technique contains personal best as well as global The algorithm is based on solving Multiple Knapsack Prob-
best to get an overall finest solution. However, it primarily lem (MKP), which dynamically minimizes the piece-wise
works with load-shifting techniques, so cannot be imple- cost function. DMKNS adds an additional constraint to the
mented without constraints. Recently, the Knapsack method Knapsack problem, which automatically regulates energy
of optimization is used to solve combinatorial problems [24]. consumption and cost variations. The MKP is the generaliza-
It is applied, where an economical and productive solution tion of a single Knapsack Problem, where more constraints
to the scheduling problems is required. Experimental results are added in the form of multiple objects to find the optimal
demonstrated that the Knapsack method is effective in mini- solution.
mizing and bringing regularity to the users fluctuating energy In this work, we have developed a Dynamic Multiple
pattern [26]. However, the method is cost-centered and often KnapSack (DMKNS) algorithm. The major contributions in
ignores user satisfaction. The optimization techniques alone this work are as follows:
can have limited effect, however, an effective smart grid sys- • Developed a Dynamic Multiple KnapSack algorithm,
tem deployment needs resource integration and their optimal which automatically schedules the provision of energy
utilization. The need for integration of an energy storage sys- to various users by optimally accounting for the avail-
tem adds flexibility to the system, however, it also introduces able energy resources (Grid and Renewable).
new challenges by adding complexity of management and • The proposed DMKNS algorithm provides a low-cost
control [25]. solution by maintaining a constant energy supply and
A closed-loop pricing algorithm addressing the random at the same time preserving consumer comfort and grid
demand of customers uses the deviation in prices caused by stability.
the variation between actual and desirable load [23]. The • The intermittent availability of resources and energy
algorithm gains the advantage of both open and closed-loop demand is met by introducing piece-wise pricing, which
schemes, however, it heavily relies on constant consumer dynamically provides a low-cost demand-specific solu-
feedback to adjust real-time pricing response. A recent energy tion.
management scheme based on an efficient model for smart • Simulation results of dynamic energy management
home infrastructure minimizes the user bill and optimizes scheduling using DMKNS shows a saving up to 50%
usage with the integration of renewable energy resources [6]. for a variable energy demand user.
However, the scheme is primarily residential-based, with very • The proposed method is general and can also be applied
restricted control and management. A new concept of micro- to various underdeveloped regions with similar con-
grid with energy storage is introduced to prioritize renewable sumer demand and statistics.
energy resources by providing power to the load and effi-
ciently managing battery discharging and overcharging [27]. The next sub-sections, briefly discuss different classes of
However, excessive use of battery power and storage renders users. Note that in DMKNS, the users are classified based
it unfeasible for large-scale commercial use. on their energy consumption, ranging from fixed to variable
The energy generation in most of underdeveloped demand.
countries predominantly uses fossil fuel, which is not
environment-friendly [29], [30]. In addition, the increase A. CLASS A (FIXED DEMAND)
in population in some of these countries has compelled the The Class A consists of two users U1 and U2 . They have fixed
energy sector to make use of alternate sources. These sources energy demand and may have the same or different power
of energy are mostly pollution-free and environment-friendly, ratings. The energy consumption is fixed and a day-a-head
however, due to their intermittent nature and lack of energy demand needs to be provided to the grid. In return, the utility
storage technologies, their efficiency is quite limited. The provides energy at the lowest possible rate using piece-wise
installation of any adopted Energy storage system (ESS) is pricing.
usually very costly, requiring regular scheduled maintenance. Some of the important abbreviations used in this Section
However, despite the overwhelming cost, the advantage of are listed below.
TABLE 4. Demand of fixed users U1 ,U2 ,Uf3 and Uf4 . demand. The utility will give an option in case of variable
energy demand to switch to fixed energy consumption to
obtain the lowest rate. However, in case the users disagree,
the energy will be provided at higher rates.
B has two users U3 and U4 and their energy consumption is Note that ‘‘m′′ defines the maximum number of time slots,
flexible. The utility will provide energy at the lowest possible which is incremented hourly. The total energy consumption in
rate, once responding to U3 and U4 fixed energy demand. The the proposed method is constrained by the maximum capacity
utility will give an option in case of variable energy demand (Cj ) of the grid and can be mathematically expressed as:
to switch to fixed energy consumption to obtain the lowest m
rate. However, in case the users disagree, the energy will be
X
Ei Yi − j ≤ Cj (4)
provided at higher rates. Similarly Class C also consists of j=1
two users Uv5 and Uv6 . Unlike ClassA and ClassB, these users
have unpredictable and time-varying demand. As long as the The main focus of the DMKs algorithm is to meet the
demand is less than the supply, the utility will continue to unpredictable and time-varying demand of Class C users.
provide energy from the grid at a slightly higher rate due In order to accommodate these demands, let Ejt be the total
to variable demand. However, when the demand is about energy consumed by Uv5 and Uv6 users, when their total
to exceed the maximum capacity of the grid, the energy demand becomes greater than the maximum capacity (Cj ).
supply from the grid is automatically cut off. A renewable In this case, the capacity constraints change to:
energy storage system is shown in Figure 1. The energy is m
X
then provided by this renewable energy source. Similarly, Ei Yi − j ≤ Cj − Ejt (5)
in case of unavailability of energy from renewable energy j=1
systems, an energy storage system is integrated with the In order to account for the excess energy generated by
renewable energy system. A control center is also present to renewable energy, let Ejr represent the excess renewable
automatically schedule the variable energy demand by using energy. Note that the constraint equation is further modified
an evolutionary algorithm. to account for these changes and can be written as:
In the mathematical preliminaries, we will first define
m
various variables used in user scheduling in DMKs: X
Ei Yi − j ≤ Cj − Ejt + Ejr (6)
• The number of users is defined by ‘‘n’’ which corre-
j=1
sponds to the number of objects in DMKs.
• The time slots variable ‘‘j’’ relates to the Knapsacks, It is observed that (6) account for the case when the Ejr
with ‘‘m’’ as its maximum value. The prices of electricity exceeds the demand and is returned back to the grid to impact
in ‘‘j’’ slots are user dependent and can be fixed and the overall cost of the scheme. The parameters used in the
variable. mathematical modeling and analysis of the proposed DMKs
• The total time required by any of the users to complete scheme are summarized in Table 1.
req The derived mathematical expressions defining the scheme
its task (i.e. 24 hours) is given by Tj .
• The cost function ‘‘Costj ’’ is a piece-wise function that along with these parameters are used in the next section for
shows the cost of energy consumed in a given time slot the simulation and results.
‘‘j’’. The system total capacity is represented by Cj .
• The amount of energy consumed by any user is denoted IV. RESULTS
by Ei , which corresponds to the weight of the Knapsack. In this section, we present simulations and performance eval-
Whereas, ‘‘i’’ accounts for the time slots of energy con- uation results of the proposed DMKs scheme with additional
sumed. constraints of energy consumption and average cost under
various availability conditions of energy sources and time
In order to represent the energy usage in a given time slot,
slots. We are using the pie-wise concept of pricing in mul-
let us define a Boolean integer variable Yij as:
( tiple time slots. It is important to note that the need and
1, Energy consumption in time slot j selection of multiple sacks are to account for variable prices
Yij = (1) in different time slots, which adds much-needed flexibility
0, No energy consumption in time slot j
to a single knapsack and accommodates user comfort. The
The linear objective function for cost minimization can proposed scheme is valid for large-scale integration, however,
now be defined as without loss of generality, we consider only three classes with
Xn Xm a maximum of two users in each class.
min Ei Yij Costj (2)
i=1 j=1 A. DEMAND OF Class A (FIXED), B (FLEXIBLE) AND C
(VARIABLE)
The integer variable Yij defining the energy usage is The first classification in the simulation and analysis is the
related to the amount of total energy consumed by each user simple case of energy consumption by the fixed demand
as user i.e. Class A (U1 and U2 ). The grid provides them with
m energy at the lowest possible rate due to fixed demand. The
req
X
Yij = Tj (3) demand data spread over the entire day, charged at a fixed
j=1 rate of$2/kW is shown in 4. Note that the fixed demand of the
FIGURE 3. Energy fluctuation of Uf3 and Uf4 in terms of units consumed (KWh).
users follows a random demand model, where each temporal to their energy usage. In this case, the utility will provide
slot is uniformly distributed from 1:00 am to 12:00 am all- energy comparatively at higher rates (i.e. 5/KW ) than the
inclusive. fixed energy users. The data of units consumed is plotted
The energy usage of U1 and U2 giving details of random in Figure 4.
fluctuation in consumption is shown in Figure 2.
The user data along with its consumption shows an ideal
case, where fixed demand places a predictable load on the B. DEMAND OF Class C (VARIABLE USERS)
grid allowing low prices at rates for the users. The next is the variable class users Uv5 and Uv6 . Note that
Next are the Class B users, which are also known as flex- the maximum energy allowed to all users in this class from
f f
ible users U3 /Uv3 and U4 /Uv4 . They can switch their demand the grid is 15 kW. In case of excessive energy consumption
between fixed and variable. Note that the behavior of a fixed (> 15 kW) by the users, the same can be drawn from the
demand user is already discussed in the preceding paragraph renewable energy source and energy storage system. In addi-
in detail and also shown in Figure 3. tion, note that the excess energy during the day is provided
So without loss of generality, we will discuss variable by renewable sources, and the same is drawn from the storage
users behaviour only i.e. Uv3 and Uv4 . The demand of system at night. The demand of variable users (Uv5 and Uv6 ) is
these users is shown in Table 5. These users have variable shown in Table 6.
energy demands throughout the day with added flexibility Energy consumption of of Uv5 and Uv6 is shown in Figure 5.
FIGURE 4. Energy fluctuation of Uv3 and Uv4 in terms of units consumed (KWh).
FIGURE 5. Energy fluctuation of Uv5 and Uv6 in terms of units consumed (KWh).
Similarly, the total energy consumption of all the users is as the demand of any of the variable users is beyond the
shown in Figure 6. maximum capacity of the grid, RES, and ESS will schedule
The plotted results show that the majority of the variable themselves to provide excess energy. A brief overview of
users have an energy requirement greater than the total capac- energy consumption of Uv5 and Uv6 from renewable and energy
ity of the grid. However, in some cases, the demand of these storage systems is given in Table 7.
users is almost double the grid capacity (i.e. 30 kw for Uv6
).Therefore, an alternative is needed to overcome this problem
in the form of RES and EES. D. BILL CALCULATION FOR Uv5 AND Uv6 WITH AND
WITHOUT RES AND ESS
C. ENERGY CONSUMPTION OF Uv5 AND Uv6 FROM In the bill calculations, the DMKs consider both of these
RENEWABLE AND ENERGY STORAGE SYSTEM variable users (Uv5 and Uv6 ), and demand for electricity
In this sub-section role of RES and ESS is briefly discussed. may exceed the maximum capacity of the grid (i.e. 15kW).
As long as the demand of variable users is within range of If demand exceeds the limit, then the extra energy is provided
the maximum capacity of the grid (i.e.15 kw), the grid will by the RES and ESS using automated scheduling. In order
continue to provide energy at the prescribed rates. As soon to observe the significance of RES and ESS integration,
FIGURE 6. Total energy consumption of all users in terms of units consumed (KWh).
FIGURE 7. Comparison of bill for Uv5 with and without RES and ESS.
a comparison of Bill for Uv5 with and without RES and ESS availability of resources and demand. In Figure 7 and Figure 8
is shown in Figure 7. it can be clearly observed that in a few time slots, the value of
The results clearly show that for twenty-four hours, the bill the bill becomes negative which means that at that time user
for Uv5 without using RES and ESS is US$ 34.6. However, is not consuming energy from the grid, renewable and energy
when RES and ESS are integrated, the bill is reduced to storage system rather it supplies surplus energy back to the
US$ 22.7. Similarly, the comparison of Bill for Uv6 with and grid.
without RES and ESS is shown in Figure 8. A comparative analysis for both criteria (with and without
Note that over a period of twenty-four hours, the bill of RES and ESS) is illustrated in Table 8, which shows a saving
Uv6 without RES and ESS is US$ 43.2. However, when RES of up to 50% for a variable user. In Table 8 Bill/day (US
and ESS are integrated with the system, the bill reduces to dollars) is presented for all the users. For U1 and U2 , the cost
US$ 15.9. The comparison of the two users i.e. Uv5 and Uv6 of electricity over a period of 24 hours is 25.5 (US dollars)
f f
in Figure 7 and Figure 8 respectively, clearly shows dynamic and 30.47 (US dollars) respectively. Similarly, U3 and U4
energy management scheduling using DMKs results in pro- have 12.6 (US dollars) and 12.3 (US dollars) respectively.
viding low-cost solution even in the presence of intermittent In order to account for the effect of renewable energy storage
FIGURE 8. Comparison of bill for Uv6 with and without RES and ESS.
TABLE 5. Demand of variable users Uv3 and Uv4 . TABLE 6. Demand of variable users Uv5 and Uv6 .
and energy storage system on the unit price of electricity for and energy storage system on the unit price of electricity for
the highly variable users, it is evident from the results that the highly variable users, it is evident from the results that for
for Uv5 (without RES and ESS) the Bill/day (US dollars) is Uv5 (without RES and ESS) the Bill/day (US dollars) is 34.6
34.6 (US dollars), which is reduced to 22.7 (US dollars) by (US dollars), which is reduced to 22.7 (US dollars) by the
the integrating of RES and ESS. Similarly for Uv6 (without integrating of RES and ESS. Similarly for Uv6 (without RES
RES and ESS) the Bill/day is reduced to 15.9 (US dollars) and ESS) the Bill/day is reduced to 15.9 (with RES and ESS)
from 43.2(without RES and ESS). In Table 8 Bill/day (US (US dollars) from 43.2(without RES and ESS). The impact
dollars) is presented for all the users. For U1 and U2 , the cost of the decrease in per unit price of electricity is reduced to
of electricity over a period of 24 hours is 25.5 (US dollars) 50% by the integration of RES and ESS and managing the
f f
and 30.47 (US dollars) respectively. Similarly, U3 and U4 available resources by optimal scheduling.
have 12.6 (US dollars) and 12.3 (US dollars) respectively. From the above table is clear that adding RES and ESS has
In order to account for the effect of renewable energy storage decreased the per unit price of electricity up to 50%.
TABLE 7. Demand of variable users (Uv5 and Uv6 ) from grid,RES and ESS in the maximum demand remains within the maximum grid
kW.
capacity.
VI. CONCLUSION
In this paper, a dynamic energy management technique
is developed based on the integration of available renew-
able resources and variable consumer demand, distinctive
to underdeveloped countries. The work classifies consumer
demand into fixed, flexible, and highly variable based on
population characteristics. The developed optimization-based
Dynamic Multiple KnapSack algorithm automatically sched-
ules the provision of energy to various users by optimally
accounting for the available energy resources. The pro-
posed method provides a low-cost solution by maintaining
a constant energy supply and at the same time preserves
consumer comfort and grid stability. The final simulation
results of dynamic energy management scheduling using the
optimization-based Dynamic Multiple KnapSack algorithm
shows a saving of up to 50% for a variable energy demand
user. The proposed approach uses a method of integration,
which is general and can also be applied to regions with
similar consumer demand and statistics.