This paper presents an detailed study about the development of an integrative DR policy for the optimal home energy management system under stochastic environment. In this study, home appliances are classified into three categories and detailed modeling of all kinds of home appliances is given. Then, the optimal HEMS problem is formulated as a stochastic programming model considering the uncertainties of PV production and critical loads to minimize a customer's electricity cost. Monte Carlo simulation method is used to decompose the problem into a mixed integer linear programming problem. Finally, the proposed stochastic programming model is verified through numerical simulation. The simulation results show that the proposed stochastic DR model can reduce the effect of the uncertainties in residential environment on the electricity cost and obtain a better DR policy than the conventional deterministic model.
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