A Two-Stage Optimization Approach for Energy Pricing and Management in Smart Homes

Shabani, Pouya; Asghari, Amin; Setayesh Nazar, Mehrdad; Keypour, Reza

doi:10.22075/mseee.2026.40626.1255

A Two-Stage Optimization Approach for Energy Pricing and Management in Smart Homes

Articles in Press

Document Type : Research Article

Authors

Pouya Shabani ¹

Amin Asghari ¹

Mehrdad Setayesh Nazar ²

Reza Keypour ¹

¹ Faculty of Electrical and Computer Engineering, Semnan University, Semnan, Iran.

² Faculty of Electrical Engineering, Shahid Beheshti University, Tehran, Iran.

10.22075/mseee.2026.40626.1255

Abstract

Currently, around 30% of global energy consumption is attributed to the residential sector, and this share is projected to grow considerably in the upcoming years. This rising demand has drawn researchers’ attention to optimizing energy management in smart homes. One of the most effective approaches is the development of smart homes, where internal components interact through a codified system to create a logical and compatible environment. The key innovation of this research is the introduction of a newly developed two-stage mixed-integer linear programming (MILP) framework that, unlike previous models, explicitly incorporates the uncertain nature of photovoltaic (PV) output and variations in real-time electricity prices. Unlike traditional deterministic approaches, the proposed model leverages stochastic and robust optimization techniques to handle instability in renewable energy generation and market prices, making energy scheduling more flexible and cost-effective. The proposed model is implemented in MATLAB using the CPLEX solver, enabling optimal energy scheduling in smart homes while accounting for various uncertainty scenarios. The outcomes of the simulations indicate that the proposed model significantly improves energy planning reliability and cost efficiency compared to traditional methods. Specifically, real-time pricing reduces electricity costs by 10.5% compared to day-ahead pricing.

Keywords

Smart Home

Day-Ahead Pricing

Real-Time Pricing

Electric Energy Consumption Management

Uncertainty Modeling

Stochastic And Robust Optimization

Two-Stage Mixed Integer Linear Programming

Subjects

Power System

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