Analysis an‎d Energy Optimization of Smart Home Equipment for Participation in the Electricity Market

6/1/2026 12:00:00 AM

This study presents an innovative energy management framework for smart homes, designed to simultaneously optimize energy consumption an‎d generation while enabling active participation in the electricity market. The proposed framework schedules controllable appliances an‎d renewable energy sources, taking into account uncertainties arising from generation, real-time market prices, an‎d uncontrollable household loads. By leveraging incremental an‎d real-time pricing models, the proposed strategy reduces consumption during peak hours an‎d facilitates load shifting to low-cost periods. The main innovation of this research lies in developing a two-stage stochastic optimization model based on mixed-integer linear programming, implemented in the GAMS software. This model minimizes the expected total cost while incorporating operational constraints of controllable loads, distributed generation sources, battery performance, an‎d the home energy balance. Furthermore, employing a day-ahead bilateral contract as a decision variable enables risk management against price volatility an‎d enhances interaction with the electricity market. Simulation results indicate that the proposed model, through optimal load scheduling an‎d coordinated operation of renewable sources an‎d storage systems, achieves a significant reduction in total energy cost compared to the baseline scenario an‎d smooths the load curve by reducing power purchased during peak hours. Battery capacity sensitivity analysis further confirms the key role of storage in increasing renewable energy self-consumption an‎d improving the system’s economic benefits. Overall, the findings demonstrate that the proposed framework not only reduces peak load an‎d operational costs but also enhances the operational flexibility of the smart home in response to market an‎d renewable generation uncertainties, offering practical applicability for effective consumer participation in the electricity market.

خانه هوشمند , بازار برق , برنامه‌ريزي خطي عدد صحيح مختلط , عدم قطعيت

Smart Home , Power Market , Mixed-Integer Linear Programming (MILP) , Uncertainty

Mohammad Sadegh Kapeleh

Dr. Shahram Jadid