Abstract
Abstract—Distributed Energy Generation (DEG) and
Distributed Energy Storage (DES) are finding increasing
applications in Demand Side Management (DSM) due to their
potentials for grid power system balance and arbitrage
opportunities. A grid-connected smart microgrid comprising
heterogeneous (active and passive) smart consumers and a largescale
energy storage device is considered in this work. Energy
management by each smart entity is carried out by the proposed
Microgrid Energy Management – Distributed Optimisation
Algorithm (MEM-DOA) installed within the network according to
consumer type. Each smart consumer optimises its energy
consumption, expenditure and trading for comfort and profit. The
proposed model was observed to yield financial benefits, grid
reliability and sustainability, reduced investment on peaker
plants, reduced Peak-to-Average-Ratio (PAR) demand and
associated environmental benefits.