Prosumer based energy management and sharing in smart grid

Abstract There is huge expectation from smart power grid to provide sustainable energy services using bi-directional flow of data and power enabled by advanced information, communication and control infrastructure. An important element of such a smart grid is prosumers i.e. the consumers who also produce and share surplus energy with grid and other users. Prosumers are not only an important stakeholder of the future smart grids but also have a vital role in peak demand management. Therefore, it is needed to investigate and review the Prosumers based Energy Management and Sharing (PEMS) along with associated challenges. It will help in understanding and analyzing the impact of prosumers in future smart grids. In order to achieve these objectives, this paper presents a comprehensive review of PEMS in smart grid environment and associated impact on power system reliability and energy sustainability. The process of energy sharing among prosumers involves two key elements: information and communication technologies and optimization techniques. These two elements have been discussed in detail to cover the PEMS implementation requirements. The relevant communications technologies presented in the paper include wired, wireless, short and long range options while linear and nonlinear optimization techniques, in context of PEMS, are described. Various technologies, methodologies and mechanisms adopted for PEMS are comprehensively discussed in order to enhance readers’ intuition. Challenges and issues faced by prosumer communities and energy sharing have also been elaborated in detail.

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