Propose a Home Demand-Side-Management algorithm for smart nano-grid

This paper proposes a novel algorithm for demand side management and its overall system architecture, based on an use-case analysis for Home Demand-Side-Management (HDSM). The kernel of this algorithm is to construct a cost functions. This cost function is the cornerstone of the cost-saving structure. MATLAB simulations carry out calculation of achievable cost-savings and peak-shaving utility. Based on the current policies and cost-per-watt of solar panel installations, results indicate that a typical PV installation, designed to offset half of the average daily home energy demand, will take an average of 18 years to pay off. Moreover, adding a battery will reduce the pay off period to 14 years and the system displaces an average of 72% more energy during peak times. These results illustrate the benefits and cost sharing for both trading side, supplier and consumer, and ensures a contingency market penetration.