Implementation of Advanced Demand Side Management for Microgrid Incorporating Demand Response and Home Energy Management System

To facilitate the possible technology and demand changes in a renewable-energy dominated future energy system, an integrated approach that involves Renewable Energy Sources (RES)-based generation, cutting-edge communication strategies, and advanced Demand Side Management (DSM) is essential. A Home Energy Management System (HEMS) with integrated Demand Response (DR) programs is able to perform optimal coordination and scheduling of various smart appliances. This paper develops an advanced DSM framework for microgrids, which encompasses modeling of a microgrid, inclusion of a smart HEMS comprising of smart load monitoring and an intelligent load controller, and finally, incorporation of a DR strategy to reduce peak demand and energy costs. Effectiveness of the proposed framework is assessed through a case study analysis, by investigation of DR opportunities and identification of energy savings for the developed model on a typical summer day in Western Australia. From the case study analysis, it is evident that a maximum amount of 2.95 kWh energy can be shifted to low demand periods, which provides a total daily energy savings of 3%. The total energy cost per day is AU$2.50 and AU$3.49 for a house with and without HEMS, respectively. Finally, maximum possible peak shaving, maximum shiftable energy, and maximum standby power losses and energy cost savings with or without HEMS have been calculated to identify the energy saving opportunities of the proposed strategy for a microgrid of 100 houses with solar, wind, and a back-up diesel generator in the generation side.