Optimal Investment on DG and ESS for Smart Homes under Demand Response

Individuals and governments tend to invest on distributed energy resources, especially renewable energy resources, recently. Demand response for industrial consumers is a grown concept, but this is almost new for domestic consumers. End users are able to control appliances by employing smart measurement components and shifting some consumption loads to off-peak times. In this paper, we determine optimal investment on photovoltaic (PV) as a distributed generation (DG) resource and energy storage systems (ESS) for one household, under demand response (DR). The designated objective function for this problem is considered dual purpose to minimize costs of this household thorough maximize benefits of DG and ESS utilization. Optimization is performed by using genetic algorithm (GA). The results show that with respect to the investment costs of PV and ESS, it is economical to choose the capacity of PV closer to maximum demand. Moreover, ESS is charged and discharged, with regard to the price of power utility and the sale price to the power utility at appropriate times. Finally, based on what mentioned above, energy dispatching is done.