Economic and Environmental Analysis of DER Integration in Smart Homes with Development of RTP and DLC

The problem of distributed energy resources (DER) integration in smart homes is evaluated in this paper. This has been done by considering the energy cost savings of smart home and environmental pollution reduction. The DER utilized in the study are photovoltaic (PV) panel, wind turbine (WT) and energy storage system (ESS). The Pareto optimality is employed to solve the two-objective optimization problem. In addition, demand response (DR) programs including real-time pricing (RTP) and direct load control (DLC) are applied in this research. In other words, smart home residents respond to price signals as well as designed incentives. Loads are classified into two groups based on their responsibility. The percentage of loads that respond to these signals and incentives are responsive loads. It was found that, regarding environmental issues, DER integration would be cost-effective. Besides, DR programs reduce energy costs and environmental pollution and increase the cash flow of smart home residents.

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