The increasing demand for electricity and the emergence of smart grids have presented new opportunities for residential energy management systems (REMS) in demand response market. Several techniques are available for optimizing the operation schedules and decisions of REMS. However, it can be challenging for REMS to capture sufficient resolution and horizon to make good short-term and long-term decisions, respectively, under limited computing resources. We propose a two-horizon algorithm, which can achieve high resolution schedules with reasonable value of energy services while limiting computation time. Simulation results are provided to confirm the validity of the proposed approach.
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Beaudin et al. (2014) studied this question.
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