Optimal threshold policy for in-home smart grid with renewable generation integration

Gi Ren Liu, Phone Lin, Yuguang Fang, Yi-Bing Lin

Research output: Contribution to journalArticlepeer-review

10 Scopus citations


In-home Smart Grid (SG), the integration of Renewable Power Systems (RPSs) with Conventional Power Systems (CPSs), calls for cost-effective management for the electricity usages of end users' household appliances. In this paper, by taking the charging process of RPSs and multiple types of household appliances in to consideration, we have developed analytical models to characterize the electricity cost in the in-home smart grid. Based on these models, we formulate the electricity cost minimization problem as a finite-horizon continuous-time Markov decision process (CTMDP), from which we obtain a threshold policy to minimize the cost. Numerical results show that the threshold policy can manage the electricity usage very effectively.

Original languageEnglish
Article number6797861
Pages (from-to)1096-1105
Number of pages10
JournalIEEE Transactions on Parallel and Distributed Systems
Issue number4
StatePublished - 1 Apr 2015


  • Continuous-time Markov decision process
  • conventional power system
  • in-home smart grid
  • renewable power system

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