Supply Side Management vs. Demand Side Management of a Residential Microgrid Equipped with an Electric Vehicle in a Dual Tariff Scheme

Abstract

Fundamentally, two main methodologies are used to reduce the electric energy bill in residential, commercial, and even industrial applications. The first method is to act on the supply side by integrating alternative means of power generation, such as renewable energy generators, having a relatively low levelized cost of energy. Whereas, the second methodology focuses on the management of the load to minimize the overall paid cost for energy. Thus, this article highlights the importance of demand side management by comparing it to the supply side management having, as criteria, the total achieved savings on the overall annual energy bill of a residential microgrid supplied by two power sources and equipped with an electric vehicle. The optimization takes into consideration the cost of kWh that is paid by the prosumer based on an economical model having as inputs the outcomes of the energy model. The adopted energy model integrates, on the demand side, an intelligent energy management system acting on secondary loads, and on the supply side, a photovoltaic (PV) system with and without battery energy storage system (BESS). The outcome of this work shows that, under the right circumstances, demand side management can be as valuable as supply side control.