Multi-stage stochastic optimization for a PV-storage hybrid unit in a household

In the face of increasing global energy supply challenges, renewable energy sources provide a cleaner and environmentally friendly energy alternative. To address the intermittency in PV power generation, battery storage can be used to store energy during lower demand periods. This requires the charging and discharging routine of the storage system to be controlled to achieve optimal economic benefits. In this paper, coordinated control between PV component and an accompanying storage unit is presented considering the stochastic nature of PV generation. The stochastic dual dynamic programming (SDDP) algorithm is employed to optimize the charge/discharge profiles with the goal to minimize the overall cost of satisfying the daily household load demand. The PV-storage hybrid unit can jointly contribute in reducing the consumer costs as shown through simulation analysis.