Economic Dispatch Strategy for Residential Microgrid System with Solar PV and Battery Energy Storage

Abstract

Text size

Economic dispatch-based energy management systems have become increasingly important with the growing adoption of renewable energy in residential applications. This study presents the development and validation of a Mixed Integer Linear Programming (MILP)-based economic dispatch strategy for a residential microgrid integrating a 5 kWp photovoltaic (PV) system and a 10 kWh of lithium-ion Battery Energy Storage System (BESS). The objective is to minimize operational costs through optimal battery charge–discharge scheduling and power flow management among the PV system, BESS, and the utility grid under Indonesia’s Time-of-Use (ToU) electricity tariff scheme. The mathematical model incorporates PV power generation with temperature correction, a recursive battery State of Charge (SOC) model, power balance equations, an objective cost function, and operational constraints. Simulations were performed in MATLAB/Simulink R2023b using measured residential load profiles, Global Horizontal Irradiance (GHI) data from the BMKG Makassar station, and validated LiFePO₄ battery parameters. Results from a 30-day simulation indicate a 38.7% reduction in operational costs compared with a conventional non-optimized system. The proposed strategy also increases PV energy utilization from 72.3% to 94.2% and improves energy self-sufficiency from 42.1% to 73.6%. Economic analysis shows a payback period of 6.8 years and a Net Present Value (NPV) of IDR 47.25 million over a 20-year project lifetime at a 7% discount rate. The proposed model demonstrates practical applicability for residential Energy Management Systems (EMSs).