Demand Management for Home Energy Networks using Cost-optimal Appliance Scheduling

Veselin Rakocevic, Soroush Jahromizadeh, Jorn Klaas Gruber, Milan Prodanovic


This paper uses problem decomposition to show that optimal dynamic home energy prices can be used to reduce the cost of supplying energy, while at the same time reducing the cost of energy for the home users. The paper makes no specific recommendations on the nature of energy pricing, but shows that energy prices can normally be found that not only result in optimal energy consumption schedules for the energy provider’s problem and are economically viable for the energy provider, but also reduce total users energy costs. Following this, the paper presents a heuristic real-time algorithm for demand management using home appliance scheduling. The presented algorithm ensures users’ privacy by requiring users to only communicate their aggregate energy consumption schedules to the energy provider at each iteration of the algorithm. The performance of the algorithm is evaluated using a comprehensive probabilistic user demand model which is based on real user data from energy provider E.ON. The simulation results show potential reduction of up to 17% of the mean peak-to-average power estimate, reducing the user daily energy cost for up to 14%.


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Paper Citation

in Harvard Style

Rakocevic V., Jahromizadeh S., Gruber J. and Prodanovic M. (2014). Demand Management for Home Energy Networks using Cost-optimal Appliance Scheduling . In Proceedings of the 3rd International Conference on Smart Grids and Green IT Systems - Volume 1: SMARTGREENS, ISBN 978-989-758-025-3, pages 21-30. DOI: 10.5220/0004854100210030

in Bibtex Style

author={Veselin Rakocevic and Soroush Jahromizadeh and Jorn Klaas Gruber and Milan Prodanovic},
title={Demand Management for Home Energy Networks using Cost-optimal Appliance Scheduling},
booktitle={Proceedings of the 3rd International Conference on Smart Grids and Green IT Systems - Volume 1: SMARTGREENS,},

in EndNote Style

JO - Proceedings of the 3rd International Conference on Smart Grids and Green IT Systems - Volume 1: SMARTGREENS,
TI - Demand Management for Home Energy Networks using Cost-optimal Appliance Scheduling
SN - 978-989-758-025-3
AU - Rakocevic V.
AU - Jahromizadeh S.
AU - Gruber J.
AU - Prodanovic M.
PY - 2014
SP - 21
EP - 30
DO - 10.5220/0004854100210030