Multi-Objective Optimization for Energy Management in Residential Microgrids with Local Energy Markets

Improper management of increasing distributed rooftop solar photovoltaic (PV) and electric vehicles (EVs) can impact distribution network stability and lead to the degradation of critical assets. Local energy markets (LEM) have emerged as a potential solution to optimise energy management, especially in residential communities. This paper proposes a novel LEM-based multi-objective optimisation scheme for energy management in a microgrid (MG) network comprising of a residential community. The objective is to minimize operational costs while mitigating peak grid import and reverse power flow. The optimisation framework integrates mixed-integer linear programming (MILP) based decision-making for power trading and scheduling of flexible devices. This study considers real-time data and utilizes statistical models for numerical simulations. Simulation results demonstrate reductions in peak grid import and reverse power flow, alongside operational cost savings compared to traditional home energy management system (HEMS) and LEM-based approaches. These findings underscore the effectiveness of the proposed approach in enhancing the stability and cost-efficiency of residential MGs considering increasing PV and EV integration.