Demand response for home energy management system

Abstract The optimization of energy consumption, with consequent cost reduction, is one of the main challenges for the present and future smart grid. Demand response (DR) program is expected to be vital in home energy management system (HEMS) which aims to schedule the operation of appliances to save energy costs by considering customer convenience as well as characteristics of electric appliances. The DR program is a challenging optimization problem especially when the formulations are non-convex or NP-hard problems. In order to solve this challenging optimization problem efficiently, an effective heuristic approach is proposed to achieve a near optimal solution with low computational costs. Different from previously proposed methods in literatures which are not suitable to be run in embedded devices such as a smart meter. The proposed algorithm can be implemented in an embedded device which has severe limitations on memory size and computational power, and can get an optimal value in real-time. Numerical studies were carried out with the data simulating practical scenarios are provided to demonstrate the effectiveness of the proposed method.