Minimization of building energy cost by optimally managing PV and battery energy storage systems

The combination of residential photovoltaic (PV) panels and battery energy storage system (BESS) is a promising solution in a building's microgrid. This paper presents an optimal energy management system (EMS) to minimize the electricity bill of residential buildings. The objective is to achieve peak shaving and electrical energy cost minimization for the owner, making use of a dynamic energy pricing model. Due to variability of PV generation and limitations of BESS, the optimization method should account for the utilisation of PV power generation and the conversion losses of power electronics converters. To deal with non-linearities involved, a particle swarm optimization (PSO) algorithm has been developed for minimization of the cost function. Simulation results show that the PSO-based EMS can achieve, as compared to standard schedule for a 24 hour period, a significant saving of daily electricity cost, which prompts for a suitable on-line control strategy.