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doi: 10.1093/ce/zkab010
Homepage: https://academic.oup.com/ce
Review Article
Smart homes: potentials and challenges
Rasha El-Azab*
Abstract
Decentralized distributed clean-energy sources have become an essential need for smart grids to reduce the harmful
effects of conventional power plants. Smart homes with a suitable sizing process and proper energy-management
schemes can share in reducing the whole grid demand and even sell clean energy to the utility. Smart homes have been
introduced recently as an alternative solution to classical power-system problems, such as the emissions of thermal
plants and blackout hazards due to bulk plants/transmission outages. The appliances, sources and energy storage
of smart homes should be coordinated with the requirements of homeowners via a suitable energy-management
scheme. Energy-management systems are the main key to optimizing both home sources and the operation of loads to
maximize home-economic benefits while keeping a comfortable lifestyle. The intermittent uncertain nature of smart
homes may badly affect the whole grid performance. The prospective high penetration of smart homes on a smart
power grid will introduce new, unusual scenarios in both generation and loading. In this paper, the main features and
requirements of smart homes are defined. This review aims also to address recent proposed smart-home energy-
management schemes. Moreover, smart-grid challenges with a high penetration of smart-home power are discussed.
Graphical Abstract
Micro-Wind
Power flow
turbine
Smart Info flow
Microgrid
Residential
PV system
Smart
Residential
Meter
ESS
SHEMS
EV
Smart
Appliances
Keywords: smart homes; energy-management system; electrical tariff; smart-home infrastructure; load
scheduling; power-quality control
(i) collecting data from different meters, homeowners’ energy can also be discharged to supply power to the grid
commands and grid utility via a proper communica- during critical events, which is known as vehicle-to-grid
tion system; [22]. By SHEMS, EVs can participate in supplying loads
(ii) providing proper monitoring and analysing of home- during high-priced power periods. In low-priced power
energy consumption for homeowners; periods, EVs restore their energy from the grid [23, 24].
(iii) coordinating between different appliances and re-
sources to satisfy the optimal solution for predefined
objectives. 2.4 Resources of electricity
Solar and wind plants are the most mature renewable-
energy sources in modern grids. Nowadays, many build-
2.2 Smart meter
ings have installed photovoltaic (PV) modules, thermal
The smart meter receives a demand-response signal from solar heaters or micro wind turbines. For smart homes,
power utilities as an input to the SHEMS system [16, 17]. various functions can be supplied by solar energy besides
Recently, advanced smart-metering infrastructures can generating electricity, such as a solar water heater (SWH),
Cloud
Wind Turbine
WI-FI 80% 100%
Smart Home Controller Router Energy Stroage System
Cloud
WI-FI WI-FI
PV panel WI-FI
Cloud
Non-schedulable HA Full-schedulable HA Electic Vechicle
Electrical
connection
Smart meter
Grid
Although wind energy is more economical for large-scale With a PLC communication scheme, home controllers
plants, it has a very limited market for micro wind turbines can also be integrated easily with a high speed of data
in homes. Typically, micro wind turbines require at least transfer. On the other hand, PLC has a high probability of
a wind speed of 2.7 m/s to generate minimum power, 25 data-signal attenuation. Furthermore, data signals suffer
m/s for rated power and 40 m/s for continuous generated from electromagnetic interference of transmitted power
power [30]. A micro wind turbine is relatively expensive, signals.
intermittent and needs special maintenance requirements
and constraints compared to a solar plant [31].
2.5.2 Zigbee
Recently, biomass energy has been a promising renew-
Zigbee is a wireless communication technique [37–46].
able resource alternative for smart homes. Many pieces of
Zigbee follows the IEEE 802.15.4 standard as a radio-
research have recommended biomass energy for different
frequency wireless communication scheme. It does not
types of buildings [32]. Heating is the main function of
require any licenses for limited zones such as homes
biomass in smart homes, as discussed in [33, 34]. In add-
[37]. Also, Zigbee is a low-power-consuming technique.
ition, a biomass-fuelled generation system is examined for
Therefore, it is suitable for basic home appliances, such as
5G [59] Reliable with high speed and capable to Expensive with many problems related to security
manage a lot of devices simultaneously and privacy
Z-Wave [6, 38, 54–56] Reliable, low data-transfer delay and Limited ranges and needs special networking
without any interference with other requirements
communication schemes
6LoWPAN [57] Low power consumer with large data- Complicated with low data-transfer rate
exchange capability
Zigbee [58, 59] Low power consumer, simple and cheap Limited range and incompatible with other
communication schemes
Wireless HART [60–62] Robust Insecure with low data-transfer rate
Bluetooth [63] Low power consumer Insecure with low data-transfer rate. It can be
interfered with by other IEEE 802.11 WLANs
Bluetooth Low Simple, cheap with very low Limited range and low amount of data handling
Energy (BLE) [63] power-consuming rate
Narrowband IoT (NB-IoT) Simple, cheap with very low Low speed with high data-transfer delay
[64, 65] power-consuming rate
Elazab | 307
(v) Alarms: SHEMS should respond to specific threats or Load-rescheduling schemes do not affect the elec-
faults by generating proper alarms according to fault tricity bills in this scheme. Therefore, homeowners are
locations, types, etc. not encouraged to rearrange their consumed energy,
as they have no any economic benefits from managing
the consumption of their appliances.
3.2 Economic analysis (ii) Block-rate tariffs: in this scheme, the monthly
Economic factors affecting home-management systems consumed energy price is classified into different
are classified into two classes. First, sizing costs include categories. Each category has its own flat-rate price.
expanses of smart-home planning. Second, operating Therefore, the main target of SHEMS is minimizing the
costs consist of bills of consumed energy. These costs de- total monthly consumed energy to avoid the risk of
pend mainly on the electrical tariff. high-priced categories.
(iii) Seasonal tariffs: in this scheme, the total grid-demand
3.2.1 Sizing costs load is changed significantly from one season to an-
These include capital, maintenance and replacement other. Therefore, the utility grid applies a high flat-rate
costs of smart-home infrastructures, such as PV sys- tariff in high-demand seasons and vice versa. SHEMS
tems, wind turbines, batteries/fuel cells and communi- should minimize the total consumption in such high-
cation systems. In most previous SHEMS, such planning priced seasons and get the benefit of consumption in
costs usually are not taken into consideration, as man- low-priced seasons.
agement schemes usually concern the daily operating (iv) Time-of-use (TOU) tariff: there are two or three pre-
costs only [69]. defined categories of tariffs daily in this scheme. First,
a high-priced-hours tariff is applied during high-
demand hours, which is known as a peak-hours tariff.
3.2.2 Operating costs
Second, an off-peak-hours tariff is applied during low-
The electricity tariff is the main factor that gives an indi-
demand hours with low prices for energy consump-
cation of the value of saving energy, according to the gov-
tion. Sometimes, three levels of pricing are defined
ernmental authority; there are many types of tariffs, as
by the utility grid during the day, i.e. off-, middle- and
follows [70–74]:
high-peak costs, as discussed in [75]. SHEMS shift in-
(i) Flat tariffs: the cost of consumed energy is constant terruptible loads with low priority to off-peak hours to
regardless of the continuous change in the load. minimize the bill.
308 | Clean Energy, 2021, Vol. 5, No. 2
(v) Super peak TOU: this can be considered as a special By using a proper optimal scheduling algorithm, electri-
case of the previously described TOU tariff but with a city bills can be reduced by shifting loads from high-priced
short peak-hours period of ~4 hours daily. to low-priced intervals [77, 78]. Many techniques have been
(vi) Critical peak pricing (CPP): the utility grid uses this proposed for home load scheduling, as will be discussed in
tariff scheme during expected critical events of the following subsections:
increasing the gap between generation and power
(i) Rule-based scheduling: in this algorithm, all home
demand. The price is increased exceptionally during
appliances and resources are connected to smart
these critical events by a constant predefined rate.
data-collector taps. By processing the collected data,
(vii) Variable peak pricing: this is a subcategory of the CPP
different appliances are scheduled according to their
tariff in which the exceptional increase in the tariff
priorities and based on the if/then rule. Also, some
is variable. The utility grid informs consumers of the
high-priority loads are supplied by home renewable
exceptional dynamic price increase according to its
sources/storage to maintain their function during
initial expectations.
predicted peak hours [79, 80].
(viii) Real-time pricing (RTP): the price is changing contin-
(ii) Artificial intelligence (AI): many AI controllers have
Table 3: Multi-objective functions of SHEMS Dynamic tariffs are applied in most smart-home re-
search. Specifically, the TOU tariff is analysed in a lot of
First objective Second objective
studies, such as [121, 122], whereas little research uses RTP,
Economic-profit Emissions minimizing [104] such as [123, 124]. EV is studied as an energy source in the
Classic Geometric programming [131] Electricity consumption Simple Difficult for users
and minimizing bills
Quadratic programming [132, 133] Optimal operation for battery Fast Limited real‐time
and engine usage
Convex programming [134–136] Maximizing economic benefits High efficiency with Complicated
with preserving comfortable real‐ time operation
lifestyle capability
Linear programming [137] Battery-charging cost Real‐time operation Valid for only one
minimizing capability linear variable
MILP [138, 139] Operating-cost minimizing High accuracy Sensitive to selected
models
MINLP [140–144] Optimizing battery-charging/ Simple modelling Slow with low
generation increases the risk of an unbalanced voltage in significantly during different operating conditions compared
low-voltage grids. Therefore, negative-sequence voltage to classical grids. Moreover, low-voltage networks may suffer
limits should be re-evaluated particularly for weak distri- from damping-stability problems due to the continuous de-
bution networks. Also, a need for zero-sequence voltage crease in resistive loads, in conjunction with the increase in
limits may arise [154]. capacitive loads of electronic equipment. In addition, reson-
ance problems may occur with low frequencies according to
the continuous change in the nature of the load [156].
4.2 Home appliances Although smart homes have bad impacts on utility
grids, there are no charges applied from the grid authority
Modern home appliances depend mainly on electronic
to homeowners based on their buildings’ effects on grid-
devices, such as newer LED lighting systems, EV battery
power quality. Therefore, home planners and SHEMS de-
chargers, etc., with relatively low fundamental current
signers are usually concerned only with the economic
and high harmonic contents compared to traditional ones.
benefits of their proposed schemes.
According to many power-system analysers, many har-
monics will increase significantly to risky levels, particu-
larly fifth-harmonic voltage, with increase in such new 5 Conclusion
electronic appliances [155].
Smart homes, using new revolutions in communication
systems and AI, provide residential houses with electrical
power of a dual nature, i.e. as producer and consumer or
4.3 Distribution network ‘prosumer’. The energy-management system includes
In future grids, significant unusual operating scenarios may many components that mainly depend on a suitable
be possible with high penetration of domestic generation, communication scheme to coordinate between available
especially with the possibility of an islanded (self-balanced) sources, loads and users’ desire. Among many proposed
operation of smart homes. Short-circuit power will differ communication systems, the IoT has many advantages
Elazab | 311
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