A Benefit-Cost Framework for Optimal Load Shifting*

We describe the background and analytical framework for a mathematical optimization model for home energy management systems (HEMS) to efficiently shift electricity load. We illustrate the flexibility of the model by modularizing various available technologies such as plug-in electrical vehicle, battery storage, automatic window opening, etc. The analysis shows that the end user can accrue economic benefits by shifting consumer loads away from higher-priced periods. Our simulation findings based on real or generated data enhance the motivation for more intelligent electricity management in the residential sector, and they demonstrate that our HEMS model can accrue substantial benefits by applying the process of load shifting to further flatten the baseline electricity load shapes of a particular household. Therefore, wide adoption of such a model could create significant cost savings for consumers. We also discuss the major concerns associated with the model use in the real world, and the possible future avenues of research investigation.