A decentralized resource allocation approach for sharing renewable energy among interconnected smart homes

The paper deals with the scheduling of energy activities of a group of interconnected users that buy energy from a producer and share a renewable energy source. The scheduling problem is stated and solved with a twofold goal. First, the model is formulated to ensure social welfare-optimal allocation of the energy produced from the shared renewable energy generator. Second, the model aims at cost-optimal planning of users´ controllable appliances taking into account a realistic time-varying quadratic pricing of the energy bought from the distribution network. The solution approach relies on a decentralized optimization algorithm that is composed by a two-level iterative procedure combining Gauss-Seidel decomposition with competitive game formulation. A case study simulated in different scenarios demonstrates that the approach allows exploiting the potential of renewable energy sources´ sharing to reduce individual users´ energy consumption costs, limiting the peak average ratio of energy profiles and complying with the customer´s energy needs.