An Optimal Energy Management System (EMS) for Residential and Industrial Microgrids

Abstract

This research presents an optimal scheme for the integration of renewable resources with the utility grid to minimize the operational cost of the residential and industrial microgrids. With the changing paradigm of solar photovoltaic in low-voltage distribution networks, utilities have allowed net metering and feed-in tariff (FiT). These incentives encourage residential and industrial consumers to contribute toward energy generation. However, in conventional mode, the system may underperform if resources are not scheduled optimally. To compensate for the price difference during off-peak and on-peak hours, the energy should be taken from the grid when electricity prices are lower and supplied to the grid when the electricity price is higher. The proposed models will therefore allow optimal resource utilization considering intermittent renewable generation as well as a time-varying utility tariff. A complete comparative analysis of on-grid and off-grid models was carried out. The results indicate that the daily average saving is about 32.0% by using the proposed on-grid scheme, where a feed-in tariff is available.