Optimal Decentralized Energy Management of a Smart Home based on Energy Democracy

Nowadays a smart home has a significant effect on increasing decentralization of smart grids. The penetration of the renewable resources and residential energy storage systems (RESSs) in smart homes could lead to more decentralization and democratization of the smart grid. On the other hands, renewable energies such as photovoltaic panels are faced with uncertainty. The RESSs are able to be used as a reserve of PVs. In this paper, the optimal energy management and optimal bidding strategy are obtained for a smart home consists of residential rooftop photovoltaic system (RRPS), residential demand response program (RDRP), and RESS. The MINLP model of the problem is solved by COUENNE in GAMS software. In this paper, a flexible energy democracy (FED) index and a concept for energy democratization and its development tools are presented. The RDRP and RESS are considered as the flexibility tools of the smart home. Numerical results show the expected profit of the smart home has been increased by the presented decision making model and bidding strategy for RRPS, RDRP and RESS.