A Bi-Level Operation Strategy for Home Energy Management System Integrating the Goals of Residential Users with Distribution Network Operator

With the advancement of net-zero targets and the large-scale deployment of distributed photovoltaic (PV) systems, battery energy storage systems (BESS), and electric vehicles (EVs) in residential sectors, home energy management systems (HEMS) have become central to improving end-use energy efficiency. However, reliance on synthetic data, simplified and homogeneous load modeling, and lack of coordination between dynamic pricing mechanisms and multi-device scheduling, make them practically inefficient. Furthermore, most studies address only unilateral user-side optimization while neglecting the distribution network operational constraints and omitting rigorous anti-arbitrage mechanisms to preclude speculative user behavior. To address these gaps, this paper proposes a data-driven coordinated scheduling framework for residential PV-BESS and multi-device systems formulated within bi-level game-theoretic architecture. The upper-level employs particle swarm optimization (PSO) to determine dynamic additional price signals for peak shaving and distribution network security, with explicit constraints on distribution transformer capacity, node voltage deviation, and load ramp rate adapted to three-user scenarios. The lower-level formulates a mixed-integer quadratic programming (MIQP) model to achieve multi-objective optimization of user electricity cost, thermal comfort, device usage preference, battery cycle degradation, and end-of-cycle energy balance. Simulation results for representative summer and winter days indicate that the proposed framework reduces user-side electricity cost by around 30%, elevates PV self-consumption rate to over 70%, and achieves about 20% peak load reduction with around 15% peak-valley difference narrowing on the grid side. All distribution network security constraints and anti-arbitrage rules are strictly satisfied. The framework effectively reconciles the objectives of both residential users and the distribution grid.

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Publication Details

Journal
Sustainability
Published
2026-08-03
DOI
https://doi.org/10.3390/su18157823
Primary Topic
Smart Grid Energy Management
Type
article
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article

A Bi-Level Operation Strategy for Home Energy Management System Integrating the Goals of Residential Users with Distribution Network Operator

Dipti Srinivasan, Shitikantha Dash, Wu Yitong
Sustainability
Smart Grid Energy Management
article

A Bi-Level Operation Strategy for Home Energy Management System Integrating the Goals of Residential Users with Distribution Network Operator

Dipti Srinivasan, Shitikantha Dash, Wu Yitong
article en

Abstract

With the advancement of net-zero targets and the large-scale deployment of distributed photovoltaic (PV) systems, battery energy storage systems (BESS), and electric vehicles (EVs) in residential sectors, home energy management systems (HEMS) have become central to improving end-use energy efficiency. However, reliance on synthetic data, simplified and homogeneous load modeling, and lack of coordination between dynamic pricing mechanisms and multi-device scheduling, make them practically inefficient. Furthermore, most studies address only unilateral user-side optimization while neglecting the distribution network operational constraints and omitting rigorous anti-arbitrage mechanisms to preclude speculative user behavior. To address these gaps, this paper proposes a data-driven coordinated scheduling framework for residential PV-BESS and multi-device systems formulated within bi-level game-theoretic architecture. The upper-level employs particle swarm optimization (PSO) to determine dynamic additional price signals for peak shaving and distribution network security, with explicit constraints on distribution transformer capacity, node voltage deviation, and load ramp rate adapted to three-user scenarios. The lower-level formulates a mixed-integer quadratic programming (MIQP) model to achieve multi-objective optimization of user electricity cost, thermal comfort, device usage preference, battery cycle degradation, and end-of-cycle energy balance. Simulation results for representative summer and winter days indicate that the proposed framework reduces user-side electricity cost by around 30%, elevates PV self-consumption rate to over 70%, and achieves about 20% peak load reduction with around 15% peak-valley difference narrowing on the grid side. All distribution network security constraints and anti-arbitrage rules are strictly satisfied. The framework effectively reconciles the objectives of both residential users and the distribution grid.

SustainabilityVol. 18(15)
National University of Singapore (SG), Suzhou Research Institute (CN)
Affordable and clean energy
Openalex Percentile: Top 16%
Smart Grid Energy Management
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