A Distributed Energy Management Approach for Residential Demand Response

The implementation of large-scale optimization and control of residential appliances to support demand response (DR) programs comes with the challenges of coordinated communication, privacy, and consideration of customer preferences. Solving this complexity is best suited through a distributed optimization and control approach at the residential level by leveraging the availability and intelligence of a home energy management systems (HEMS). In this paper, a hierarchical control scheme to coordinate large-scale residential demand response through coordination of HEMs is proposed. This scheme is based on the exchange of a reward price and aggregated load information between utility system and HEMS. Numerical results on a one hundred-house model demonstrate the computational efficiency of the proposed approach.