Dynamic Programming for Optimal Energy Management in Nanogrids

The technological advancement in the energy sector leads to innovative grid structures for increasing the connection of renewable energy sources. The Nanogrid, a local modest-sized building energy system with power generation, energy storage, and real-time operation system, ranging from a residential home to a small commercial or industrial building, is a typical example. This paper aims to analyse the benefits for prosumers derived by adopting an intelligent electric energy management system that enables the optimal coordinated operation of the available resources within their Nanogrid. The optimisation objective is to maximise profits for the smart Nanogrid owner. The proposed energy management system is based on a dynamic programming algorithm implemented in MatLab on which is modelled the control system of the Nanogrid. The simulation result confirms that the proposed approach can be used in e realistic real-world case study.