Coordinated demand-side management and energy storage system for a hybrid photovoltaic–wind microgrid under time-of-use tariffs

Abstract

Widespread electrification and increasing penetration of distributed renewables increase stress on distribution networks and motivate demand-side management (DSM) strategies that coordinate flexible loads and energy storage. This study investigates a grid-connected hybrid microgrid comprising a 5 kW photovoltaic array, a 3 kW wind turbine, a 10 kW h battery energy storage system, and a mixed residential–commercial load of about 54 kW h/day under a three-level time-of-use tariff. An optimization-based energy management framework evaluates three operating strategies: (i) a baseline without DSM or storage, (ii) DSM-only load shifting of 20% of the daily demand from peak to off-peak hours, and (iii) the proposed coordinated DSM + energy storage system schedule that jointly optimizes flexible demand, battery charge–discharge, and grid exchange. Over a 24 h horizon, the coordinated strategy reduces the total daily electricity cost from 3.086 USD to 0.108 USD (96.49% savings), decreases the maximum grid import by 69.25%, eliminates photovoltaic curtailment, and increases the renewable share in load supply from 68.33% to 92.56%, while keeping the battery at an average state of charge of 53.69% with roughly one equivalent complete cycle per day. The magnitude of the cost reduction arises from the selected time-of-use schedule and the assumed day-ahead profiles used in the case study. Battery cycling is reported as an operational indicator rather than as a degradation cost term in the optimization objective. A sensitivity analysis with respect to storage capacity reveals substantial cost reductions up to approximately 10–15 kW h, with diminishing returns beyond this range. The results underscore the value of jointly designing DSM and storage scheduling for cost-effective, renewable-rich microgrids, and provide quantitative guidance for storage sizing under time-varying prices.

Keywords

Battery energy storage system / Demand-side management / Energy management optimization / Renewable microgrid / Time-of-use pricing

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