Trend AnalysisEngineering

Smart Grids and Microgrids: AI-Driven Energy Management for Renewable Integration

Renewable energy sources (solar PV, wind) are inherently variable โ€” the sun doesn't shine at night, and wind is unpredictable. Integrating high fractions of renewables (>50%) into electricity grids wi...

By Sean K.S. Shin
This blog summarizes research trends based on published paper abstracts. Specific numbers or findings may contain inaccuracies. For scholarly rigor, always consult the original papers cited in each post.

The Question

Renewable energy sources (solar PV, wind) are inherently variable โ€” the sun doesn't shine at night, and wind is unpredictable. Integrating high fractions of renewables (>50%) into electricity grids without compromising reliability requires intelligent energy management systems (EMS) that coordinate generation, storage, demand response, and grid exchange in real-time. Microgrids โ€” localised energy systems that can operate independently or connected to the main grid โ€” offer a testbed for these challenges. Can AI-driven optimisation algorithms manage microgrid complexity better than rule-based controllers?

Landscape

Hassan & Atia (2024) reviewed microgrid configurations for both off-grid and on-grid communities, comparing technical and economic performance across off-grid and on-grid solar-wind-battery configurations using multi-objective optimisation (PSO, transit search, grey wolf algorithms). Their analysis found that off-grid configurations achieve an LCOE of ~$0.34/kWh (optimised via PSO), while on-grid configurations reach significantly lower LCOE of ~$0.12/kWh.

Ahmed et al. (2024) designed a sustainable hybrid renewable energy system for a remote island refugee camp in Bangladesh โ€” a real-world case where grid connection is impossible. Using HOMER (Hybrid Optimization of Multiple Energy Resources) simulation coupled with SCADA-based operation, they demonstrated that a hybrid microgrid incorporating solar PV, wind, diesel, biomass, tidal turbines, and battery storage can reliably power the community with priority-based load management during low-generation periods.

Panda et al. (2025) applied particle swarm optimisation (PSO) with demand response to grid-connected PV-battery systems, showing that combining supply-side optimisation (when to charge/discharge the battery) with demand-side management (shifting flexible loads) reduces electricity costs by 15โ€“25% compared to supply-side optimisation alone.

Y. Liu & Wan (2025) extended microgrid optimisation to include electric vehicle (EV) charging, treating EVs as mobile energy storage that can provide vehicle-to-grid (V2G) services. Their integrated approach achieved lower total cost than optimising EV charging and microgrid operation separately.

Key Claims & Evidence

<
ClaimEvidenceVerdict
Off-grid solar-wind-battery microgrids achieve LCOE ~$0.34/kWh; on-grid ~$0.12/kWhMulti-objective optimisation across configurations (Hassan & Atia 2024)Supported; varies by solar/wind resource and grid availability
AI optimisation outperforms rule-based EMSPSO + demand response reduces costs 15โ€“25% vs. rules-only (Panda et al. 2025)Supported; computational complexity is the trade-off
EV integration as mobile storage improves microgrid economicsV2G-integrated optimisation lowers total cost (Y. Liu & Wan 2025)Demonstrated; EV owner incentive alignment is key
Priority-based load management enables off-grid reliabilitySCADA-managed load shedding maintains supply during low generation (Ahmed et al. 2024)Demonstrated for remote communities

Open Questions

  • Scalability: Most microgrid EMS demonstrations involve <100 nodes. Can the same algorithms scale to thousands of distributed energy resources?
  • Cybersecurity: Smart grids with internet-connected EMS are vulnerable to cyberattack. How should energy system cybersecurity be architectured?
  • Regulatory barriers: Microgrid operators who sell electricity to neighbours face complex regulatory requirements. Can regulatory sandboxes accelerate microgrid deployment?
  • Hydrogen integration: Can green hydrogen (produced by electrolysis during excess renewable generation) serve as long-duration storage within microgrids?
  • Referenced Papers

    • [1] Hassan, A.A. & Atia, D. (2024). Optimizing microgrid integration of renewable energy. Journal of Electrical Systems and Information Technology. DOI: 10.1186/s43067-024-00186-6
    • [2] Ahmed, I. et al. (2024). Sustainable hybrid renewable energy for a remote island community. IET Smart Grid. DOI: 10.1049/stg2.12192
    • [3] Panda, S. et al. (2025). Optimization-Based Energy Management for PV-Battery with Demand Response. Engineering Reports. DOI: 10.1002/eng2.70305
    • [4] Liu, Y. & Wan, F. (2025). Integrated Microgrid Optimization with EVs and Demand Response. Technology and Economics of Smart Grids and Sustainable Energy. DOI: 10.1007/s40866-025-00257-1
    • [5] Hamza, M.F. et al. (2025). Chimp Optimization + Rule-Based EMS for Microgrid Performance. Electronics, 14(10), 2037. DOI: 10.3390/electronics14102037

    References (5)

    Hassan, A. A., & Atia, D. M. (2024). Optimizing microgrid integration of renewable energy for sustainable solutions in off/on-grid communities. Journal of Electrical Systems and Information Technology, 11(1).
    Ahmed, I., Razzak, M. A., & Ahmed, F. (2024). Sustainable hybrid renewable energy management system for a community in island: A model approach utilising Hybrid Optimization of Multiple Energy Resources optimization and priority settingโ€based Supervisory Control and Data Acquisition operation. IET Smart Grid, 7(6), 940-966.
    Panda, S., Rout, P. K., Sahu, B. K., Mbasso, W. F., Jangir, P., & Elrashidi, A. (2025). Optimizationโ€Based Energy Management for Gridโ€Connected Photovoltaicโ€“Battery Systems in Smart Grids Using Demand Response and Particle Swarm Optimization. Engineering Reports, 7(7).
    Liu, Y., & Wan, F. (2025). Integrated Optimization of Microgrids with Renewable Energy, Electric Vehicles, and Adaptive Demand Response for Sustainable and Efficient Energy Management. Smart Grids and Sustainable Energy, 10(1).
    Hamza, M. F., Modu, B., & Almutairi, S. Z. (2025). Integration of the Chimp Optimization Algorithm and Rule-Based Energy Management Strategy for Enhanced Microgrid Performance Considering Energy Trading Pattern. Electronics, 14(10), 2037.

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