Abstract
We consider the optimal stochastic control problem
for home energy systems with solar and energy storage
devices when the demand is realized from the grid. The demand
is subject to Brownian motions with both drift and variance
parameters modulated by a continuous-time Markov chain that
represents the regime of electricity price. We model the systems
as pure stochastic differential equation models, and then we
follow the completing square technique to solve the stochastic
home energy management problem. The effectiveness of the
efficiency of the proposed approach is validated through a
simulation example. For practical situations with constraints
consistent to those studied here, our results imply the proposed
framework could reduce the electricity cost from short-term
purchase in peak hour market.
