processes

Review
A Comprehensive Review of Microgrid Energy Management
Strategies Considering Electric Vehicles, Energy Storage
Systems, and AI Techniques
Muhammad Raheel Khan 1 , Zunaib Maqsood Haider 1, * , Farhan Hameed Malik 2 , Fahad M. Almasoudi 3 ,
Khaled Saleem S. Alatawi 3 and Muhammad Shoaib Bhutta 4, *

1 Department of Electrical Engineering, The Islamia University of Bahawalpur, Bahawalpur 63100, Pakistan;
[email protected]
2 Department of Electromechanical Engineering, Abu Dhabi Polytechnic,
Abu Dhabi 13232, United Arab Emirates; [email protected]
3 Department of Electrical Engineering, Faculty of Engineering, University of Tabuk,
Tabuk 47913, Saudi Arabia; [email protected] (F.M.A.); [email protected] (K.S.S.A.)
4 School of Automobile Engineering, Guilin University of Aerospace Technology, Guilin 541004, China
* Correspondence: [email protected] (Z.M.H.); [email protected] (M.S.B.)

Abstract: The relentlessly depleting fossil‑fuel‑based energy resources worldwide have forbidden an
imminent energy crisis that could severely impact the general population. This dire situation calls
for the immediate exploitation of renewable energy resources to redress the balance between power
consumption and generation. This manuscript confers about energy management tactics to optimize
the methods of power production and consumption. Furthermore, this paper also discusses the
solutions to enhance the reliability of the electrical power system. In order to elucidate the enhanced
reliability of the electrical system, microgrids consisting of different energy resources, load types,
and optimization techniques are comprehensively analyzed to explore the significance of energy
management systems (EMSs) and demand response strategies. Subsequently, this paper discusses
the role of EMS for the proper consumption of electrical power considering the advent of electric
Citation: Khan, M.R.; Haider, Z.M.; vehicles (EVs) in the energy market. The main reason to integrate EVs is the growing hazards of
Malik, F.H.; Almasoudi, F.M.; climate change due to carbon emissions. Moreover, this paper sheds light on the growing importance
Alatawi, K.S.S.; Bhutta, M.S. A of artificial intelligence (AI) in the technological realm and its incorporation into electrical systems
Comprehensive Review of Microgrid with the notion of strengthening existing smart grid technologies and to handle the uncertainties in
Energy Management Strategies load management. This paper also delineates the different methodologies to effectively mitigate the
Considering Electric Vehicles, Energy
probability of facing cyber‑attacks and to make the smart grids invulnerable.
Storage Systems, and AI Techniques.
Processes 2024, 12, 270. https://
Keywords: energy storage system; demand‑side management; renewable energy resources; microgrid;
doi.org/10.3390/pr12020270
smart grid; optimization algorithms; electric vehicles; artificial intelligence
Academic Editor: Peng Li

Received: 26 November 2023

Revised: 9 January 2024
Accepted: 13 January 2024
1. Introduction
Published: 26 January 2024 Energy systems are receiving widespread attention due to their significance in our
daily lives. Most of our energy generation systems are based on fossil fuels, which are non‑
renewable and come with an inevitable concomitant—hazardous carbon emissions. The
growing nuisance of carbon emissions is pivotal in intensifying global warming. There is
Copyright: © 2024 by the authors. an instant need to curtail this menacing phenomenon to forestall potential large‑scale en‑
Licensee MDPI, Basel, Switzerland. vironmental catastrophes. These fossil fuels, including oil, coal, and gas, are continuously
This article is an open access article
depleting at a baffling rate, raising a red flag for concerned scientists to cope with this issue
distributed under the terms and
instantly [1]. Moreover, the global shortage of fossil fuels consequently results in an exces‑
conditions of the Creative Commons
sive spike in its prices [2]. According to experts, the extensive dependence on fossil fuels
Attribution (CC BY) license (https://
can significantly impede the development process of countries and, sometimes, become
creativecommons.org/licenses/by/
the cause of an outright economic downturn that drags countries to the brink of an utter
4.0/).

Processes 2024, 12, 270. https://doi.org/10.3390/pr12020270 https://www.mdpi.com/journal/processes

Processes 2024, 12, 270 2 of 42

fiasco. In modern times, fossil‑fuel‑operated vehicles are being supplanted by high‑tech

electric vehicles that are environmentally friendly with zero tailpipe emissions. This rapid
adaption of electric vehicles augurs well for the environment and the automobile industry.
It has been made adequately practical by engineers to charge these electric vehicles using
less expensive and more efficient electrical supply sources.
Furthermore, scientists are undertaking extensive research to fathom alternate energy
resources to uproot the evil of carbon emissions and to satiate the incessantly amplifying
energy demands across the globe. Some issues related to the energy system include fos‑
sil fuel depletion, relentlessly rising greenhouse gas (GHG) emissions, and a huge energy
shortage [3]. It is a common belief amongst the experts that the significant utilization of
renewable energy resources, to meet the growing energy demand, is the most suitable al‑
ternative available at the moment. In this regard, optimized energy management is imper‑
ative in order to yield maximum results from renewable resources, which can be achieved
through microgrids. A microgrid is a decentralized, resilient energy system that facilitates
the transition from fossil fuels to renewable energy. It integrates renewable sources, like
solar and wind, reducing dependence on centralized infrastructure. Microgrids enhance
grid resilience, promoting energy independence and optimizing management. The acute
decline in energy reserves calls for the immediate formulation of requisite energy man‑
agement strategies to rectify such widespread concerns. The panacea for all these thorny
issues lies in effectively implementing a microgrid energy management system [4]. Con‑
temporary study aims to showcase the effectiveness of microgrid energy management sys‑
tems, and for this purpose, it incorporates different decisive determinants, such as phasor
measurement units and sensor nodes [5]. Furthermore, in this regard, a unique decentral‑
ized controlling structure is also included to regulate the voltage and frequency variations
in an AC microgrid (MG). In any microgrid management system, a sturdy energy man‑
agement system underlies the smooth availability of electrical supply to consumers. For a
better energy management system, a higher bandwidth control structure is more suitable
than the conventional one, without any need for communication hardware. The approach
mentioned above was employed by the set model of finite control that predicts the volt‑
age converter’s control at the primary level. On the other hand, a droop control can also
be used to keep the frequency and voltage steady and maintain them at the secondary
level of hierarchical control. The simulation results also verified the accurate voltage and
frequency of restoration, as well as the swift and uninterrupted sharing of power during
transient and steady‑state behaviors [6]. In addition to the aforementioned facets of this
study, Gaziantep Metropolitan Municipality Central Wastewater Treatment Plant is also
employed to investigate urban wastewater using the new concept of the bio‑gas plants, and
simultaneously, different calculations were performed to analyze the output power ratio
compared to the injected fuel [7]. Figure 1 depicts the smart grid (SG) system architecture.
Additionally, demand response energy management is a strategic approach to opti‑
mizing energy consumption by adjusting usage based on changing grid conditions, pricing
signals, or environmental factors. It involves real‑time monitoring and adaptive decision
making using advanced technologies like smart meters, promoting a more resilient and
sustainable energy infrastructure. A new energy management strategy through a fuzzy
adaptive particle swarm optimization algorithm (PSO) was proposed to increase the effi‑
ciency and performance of microgrid systems by analyzing the losses. PSO optimized the
demand response by identifying optimal energy consumption patterns through collective
intelligence and dynamic particle adaption, consequently enhancing gird efficiency [8].
 Processes 2024, 12, x FOR PEER REVIEW 3 of 44
Processes 2024, 12, 270 3 of 42

Figure 1. Smart grid system architecture.

Figure 1. Smart grid system architecture.
Furthermore, the optimal dispatch of integrated energy systems in smart homes by
combiningAdditionally,
heat, power, demand response
and batteries wasenergy management
also presented. is a strategic
The prime motive was approach
to effec‑to
optimizing
tively mitigateenergy consumption
the operation costs by byimplementing
adjusting usage based energy
adequate on changing
routing grid
andconditions,
optimal
energy
pricingscheduling
signals, orduring different time
environmental intervals.
factors. A considerable
It involves number of
real-time monitoring countries
and adaptive
aredecision
promoting combined
making usingheat and power
advanced (CHP) andlike
technologies operations that arepromoting
smart meters, studied using an
a more
evolutionary
resilient and algorithm. In this
sustainable regard,
energy a robust integrated
infrastructure. A newenergy energy system is preferred
management for
strategy
optimized
through aenergy
fuzzy management.
adaptive particle A typical
swarmintegrated energy
optimization system(PSO)
algorithm consistswasofproposed
fuel cells,to
a thermal power plant, batteries, electricity loads, and natural gas resources
increase the efficiency and performance of microgrid systems by analyzing the losses. PSO connected to
theoptimized
electrical the
grid.demand
The Harmony Search Algorithm (HSA) was used for
response by identifying optimal energy consumption patterns proper energy
routing
throughandcollective
scheduling. The obtained
intelligence and results
dynamic decreased
particle the system consequently
adaption, operation costenhancing
[9]. The
advanced energy[8].
gird efficiency management System (AEMS) facilitates the microgrid’s energy flow. It
also provides new techniques,
Furthermore, the optimalalgorithms,
dispatch ofand new approaches
integrated to energy
energy systems management
in smart homes by
like the block chain, artificial intelligence, or machine learning
combining heat, power, and batteries was also presented. The prime motive was [10]. Table 1 shows the to
detailed study of ‘Microgrids’ energy management systems (EMSs).
effectively mitigate the operation costs by implementing adequate energy routing and
optimal energy scheduling during different time intervals. A considerable number of
Table 1. Details
countries areofpromoting
Microgrid Energy
combined Management
heat andSystem.
power (CHP) and operations that are studied
using an evolutionary algorithm. In this regard, a robust integrated energy system is
Optimization
Ref. Building Type Integrated for
preferred Components
optimized energy management. A typical Load Types
integrated energyResults
system consists
Techniques
of fuel cells, a thermal power plant, batteries, electricity loads, and natural gas resources
System operational
connected to the electrical Harmonygrid. TheSearch
Harmony Search
ThermalAlgorithm
and (HSA) was used for
Fuel cells, batteries, cost reduces as
[9] Large‑sized building proper energy routing Method
and AlgorithmThe obtained
scheduling. electricalresults decreased the system
natural gas resources demand curves do
operation cost [9]. The advanced (HAS)energy management loads System (AEMS) facilitates the
not change
microgrid’s energy flow. It also provides new techniques, algorithms, and new
approaches to energy management like the block chain, artificial intelligence, or machine
Processes 2024, 12, 270 4 of 42

Table 1. Cont.

Optimization
Ref. Building Type Integrated Components Load Types Results
Techniques
Campus Load of
Photovoltaic panels, Mathematical
University of
distributed generations problem of optimal Electrical System operations
[11] Engineering and
(DGs), energy scheduling of DG Loads become cost‑effective
Technology,
storage systems and DR
Taxila, Pakistan
Controllable and Power system cost
A micro market
uncontrollable loads, Self‑Crossover Electrical control, power
[12] design for the
distributed Genetic Algorithm Loads system operation
university
generation (DG) control
Hybrid energy resources, Electrical
Real Coded Genetic Optimal
[13] Smart house battery energy storage loads, electrical
Algorithm operational cost
system, Boiler vehicles
Photovoltaic (PV)
Optimal energy
generation, energy Electrical
[14] Smart home Genetic Algorithm scheduling and
storage, grid appliances
management
energy exchange
Reduction in energy
Photovoltaic panels, Linear optimization
University Electrical cost by 45.58% and
[15] energy storage system, problem solved by
smart grid loads reduction in load
electric vehicles MATLAB
by 19.33%
Reduction in energy
Solar cells and wind Quantum Particle
Grid connected Electrical cost 43.81% and
[16] energy generation, Swarm
to microgrid loads reduction in load
Main Grid Optimization
by 20%
Renewable energy Convex Microgrid
Electrical
[17] Off‑grid microgrid generation and battery optimization operational cost
loads
storage system methods reduction
Reduction in
Grid connect Multi‑Objective
Solar cells and battery Electrical operational cost of
[18] commercial Particle Swarm
energy storage systems loads system and resilience
microgrid Optimization
of System
Extension in battery
Hybrid renewal system,
Non‑dominated life, optimal energy
battery energy storage Electrical
[19] Microgrid sorting genetic generation, and
system, electrical loads
algorithm‑II recharge cost
vehicle aggregator
of vehicles
Reduction in
electricity tariff by
Solar and battery Glow‑Warm Swarm
[20] Smart grid Small‑scale loads 11.2% and reduction
storage system Optimization
from 2.3 to 2.27 with
load of 8.2 kWh/day
Renewable energy Energy cost and CO2
Dynamic Stochastic Commercial
[21] Commercial grid resources and emission reduction
Optimization loads
gridable Vehicles and reliability system
Reduction in energy
Electric vehicle, Elephant Herding Commercial
[22] Microgrid cost and stability
main Grid Optimization loads
enhancement of grid
Pontryagin’s
Main grid with renewable Cost minimization
Plug‑in electric minimum principle Commercial
[23] energy systems and and extended
vehicles and particle swarm loads
battery storage battery life
optimization
 Electric vehicle, main Elephant Herding Commercial
[22] Microgrid stability
Grid Optimization loads
enhancement of
grid
Processes 2024, 12, 270
Main grid with Pontryagin’s
Cost minimization
5 of 42
renewable energy minimum principle
[23] Plug-in electric vehicles Commercial loads and extended
systems and battery
and particle swarm
battery life
Table 1. Cont. storage optimization
Low operating
Renewable energy Optimization
Risk-constrained Commercial
Ref. Building Type Integrated Components Load Types Resultsand reliable
costs
[24] Hybrid power plant generation and Battery Techniques
optimization electrical
power generation
Storage algorithms Loads Low operating costs
Renewable energy Risk‑constrained Commercial
and reliable power
[24] Hybrid power plant generation
Dispersed generating optimization
and electrical
generation
Battery Storage algorithms Loads Enhancement of
Multi-carrier energy system, combined heat Mixed-integer non- Electrical and
[25] economic operation
hub and power
Dispersed units, battery linear optimization thermal loads
generating
Mixed‑integer Enhancement
of the of
system
Multi‑carrier system, combined heat
storage system Electrical and
[25] non‑linear economic operation
energy hub and power units, battery thermal loads
storage system
optimization Recovered
of the system energy
Battery-flywheel Optimization increased 1.17 times
Recovered energy
[26] compound energy
Battery‑flywheel Battery storage system Method for
Optimization Genetic Motor load and
increased decrease
1.17 times of
[26] storageenergy
compound system Battery storage system Algorithms
Method for Genetic Motor load and42.27%
decreaseinofcharging
storage system Algorithms 42.27% current
in
charging current

According to the statistical study conducted by E. Wood on microgrids, the

Accordingoperational
autonomous to the statistical study conducted
capability by E. Wood
and sustainability ofon microgrids,are
microgrids thepredicted
autonomous to grow
operational capability and sustainability of microgrids are predicted to grow significantly
significantly in the upcoming years on a global scale, especially in North America and the
inAsia–Pacific.
the upcoming years2018
From on a global
to 2027,scale,
gridespecially
capacityinand
North America and
spendings the Asia–Pacific.
are predicted to rise by
From 2018five
around to 2027,
timesgrid[27].
capacity
The and spendings
growth are predicted
in microgrid to rise by
capacity andaround five times
spending over[27].
time is
The growth in microgrid
depicted in Figure 2. capacity and spending over time is depicted in Figure 2.

Figure 2. Microgrid capacity vs. spending graph.

This study is a comprehensive survey of the microgrid energy management system

and can be classified in the following areas:
• Microgrid demand‑side management (DSM)
• Demand response strategies
• Microgrid energy storage system
• Role of AI in smart grids
• Optimization techniques used for energy management systems
• Uncertainty handling in microgrid system
• Future scope and challenges in microgrid systems
Processes 2024, 12, 270 6 of 42

This paper consists of various sections. Section 2 focuses on microgrid demand‑side

management, while Section 3 discusses demand response strategies. Section 4 highlights
the microgrid energy storage system, and Section 5 explains the role of AI in smart grids.
Sections 6–9 are dedicated to discussing uncertainty handling in microgrid systems’ future
scope and challenges, respectively.

2. Microgrid Demand‑Side Management

Microgrid demand‑side management optimizes electricity consumption within a mi‑
crogrid to improve efficiency, reduce costs, and improve grid performance. It uses ad‑
vanced technologies like smart meters, sensors, and automation to monitor usage patterns,
implement demand response strategies, and promote sustainable energy practices.
There are two key factors that are taken into consideration when accessing a microgrid
system: the cost and quality of service. Besides that, load‑side or demand‑side manage‑
ment is also an important factor that holds the ability to considerably enhance the quality
of the power system network. Demand‑side management (DSM) mitigates the effect of
contingencies and the utilization of peak load management, considering the demand re‑
sponse (DR) techniques. Some existing studies are also presented here to explore the new
paradigm in this domain, anatomizing the provision of electricity to remote areas with less
cost and more reliability. In that context, objective functions were established as the cost
of electricity (COE) and the probability of power supply loss (LPSP) [28]. Figure 3 shows a
detailed picture of the energy management system covering utility‑side, generation‑side,
Processes 2024, 12, x FOR PEER REVIEW 7 of 44
and demand‑side management.

Figure 3. Demand-side management with other aspects.

Figure 3. Demand‑side management with other aspects.
Furthermore, the customer-oriented incentive charging scheme for electric vehicles
(EVs) were established for communication between multiple microgrid regions. Initially,
the respective implementation framework was incorporated into the system based on
multi-regional charging coordination, and subsequently, the charging information was
shared with the customers. Afterwards, by taking into the consideration the potential
Processes 2024, 12, 270 7 of 42

Furthermore, the customer‑oriented incentive charging scheme for electric vehicles

(EVs) were established for communication between multiple microgrid regions. Initially,
the respective implementation framework was incorporated into the system based on multi‑
regional charging coordination, and subsequently, the charging information was shared
with the customers. Afterwards, by taking into the consideration the potential impacts of
charging price, charging demand and customer charging demand models were formulated
to amplify the interests of system operators. The algorithms used to solve the models in‑
cluded particle swarm optimization (PSO), which conspicuously improved the multi‑grid
system’s operating revenue [29]. Table 2 shows the study of demand‑side management of
different types of loads considering the components installed.

Table 2. Demand‑side management analysis of different types of loads.

Components Load Type

Refs. Load Type (BESS)

Residential/Comm
PV (Battery Energy Wind Biomass DG 1 MT 2 EV 3 SC 4 FC 5 CHP 6
ercial/Industrial
Storage System)
Commercial
[9] 4 2
 4 4 4 4 4 4 4 2
 Commercial
building
Commercial
[11] Campus building 2
 2
 4 4 2
 4 4 4 4 4
microgrid
University Commercial
[30] 2
 4 4 4 2
 4 4 4 4 4
building microgrid
University
[12] 4 4 4 4 2
 4 4 4 4 4 Commercial Load
building
[14] Smart house 2
 2
 4 4 4 4 4 4 4 4 Residential Load
University Commercial
[15] 2
 2
 4 4 4 4 2
 4 4 4
building microgrid
Grid connected to Commercial
[16] 2
 4 2
 4 2
 4 4 4 4 4
microgrid microgrid
Hybrid power
[24] 2
 2
 2
 4 4 4 4 4 4 4 Commercial
plant
Multi‑carrier
[25] 4 2
 4 4 2
 4 4 4 4 2
 Commercial Load
energy hub
1DG denotes distributed generation. 2 MT denotes the microturbine. 3 EV denotes the electric vehicle. 4 SC de‑
notes supercapacitor. 5 FC denotes fuel cells. 6 CHP denotes combined heat and power.

Microgrid energy management is a broadly deliberated technological strategy in the

realm of electrical power management topic from the last few years because of the ampli‑
fying demand for electricity, climate change, and increasing electricity costs. To overcome
these issues, densely populated countries are inching towards the utilization of renewable
energy resources—by discarding the hitherto predominant utilization of fossil fuels. The
installation of solar/PV panels is a widely preferred phenomenon that is a rich source of
electrical energy in multiple highly luminous areas, offices, and institutes, and notably,
almost 1–20% of renewable energy is being used to meet the electrical energy demand
of the institutions [30]. In this day and age, existing energy systems primarily bank on
fossils, but resultant emissions and unprecedented price hikes are the glaring undersides
attached to such energy production phenomena. On the other hand, the systems operated
by renewable energy resources are primarily cost‑effective and environmentally friendly
with virtually zero carbon emissions. To achieve the optimized flow of energy, energy
management is mostly performed through renewable energy resources, DG generators,
and energy storage systems, On the other hand, due to high load demand, electric power
systems are becoming excessively intricate considering their stability and reliability [31].
To meet the energy demand and improve the efficiency, researchers are painstakingly
working on multiple techniques of smart microgrid; one of them is the emergency en‑
ergy demand response technique considering the decentralized approach for distribution‑
feeder load management based on decision‑making techniques. The same approach not
only relieved the system of undue burden, but also mitigated the demand rebound ef‑
Processes 2024, 12, 270 8 of 42

fect and provided efficient and clean energy without any hazardous impact on the cli‑
mate [32]. Moreover, in terms of demand‑side management, two factors are under consid‑
eration: one is power cost control, and the other is power system operation. The microgrid
demand‑side management optimization model is designed to acquire optimized system
cost, load control, and micro‑market operations. For the purpose of consequent analysis,
self‑crossover genetic algorithms were implemented to deduce the desired results. The
primary aim of the study is to investigate and implement effective methods for managing
unpredictable loads [12].
A microgrid is a feasible choice for a sustainable and reliable electrical energy supply
system. The microgrid planning model developed through the MDS tool is divided into
two sub‑models: performance and economic models. Performance models are utilized to
analyze energy and help appraise technical feasibility, and on the other hand, economic
models are used to calculate the cash flow. Microgrid planning is a difficult task and some‑
times requires government incentives to complete these tasks [33]. The power system faces
challenges, such as inaccurate power sharing and the inability to extract maximum power
from renewable energy resources. An optimal 3D droop method is proposed to address
Processes 2024, 12, x FOR PEER REVIEW 9 of 44
this issue [34]. Figure 4 represents various smart grid components.

Figure 4. Smart grid integrated components.

Figure 4. Smart grid integrated components.

In aacomprehensive
In comprehensive study
study regarding
regarding the interactive
the interactive framework framework for improving
for improving resilience
of power–water distribution systems with multiple microgrids, emergenciesemergencies
resilience of power–water distribution systems with multiple microgrids, and micro‑
and microgrids
grids provide the provide the Distribution
Distribution System Operator
System Operator (DSO) with (DSO) with anblock
an energy energy block
list. list.
Subse‑
Subsequently, the DSO chooses a plan to reconnect the disconnected
quently, the DSO chooses a plan to reconnect the disconnected loads by assessing the inac‑ loads by assessing
the inaccessibility
cessibility values pertinent
values pertinent to theand
to the power power anddistribution
water water distribution
networknetwork
damage.damage.
In this
regard, the modified IEEE‑30 bus system, including the microgrids, is used asisaused
In this regard, the modified IEEE-30 bus system, including the microgrids, as a
test, and
test,usefulness
the and the of usefulness of the
the proposed proposed
strategy strategy
is confirmed is Microgrids
[35]. confirmed can [35].significantly
Microgridshelp can
significantly
in providing ahelpclean in and
providing
seamless a clean andsupply
energy seamless energyand
to remote supply to remote
far‑flung areasandwithfar-flung
poten‑
areas no
tially with potentially
energy losses. no energy conducted
Research losses. Research
in the conducted
remote areas in the remotecorroborates
of Tanzia areas of Tanziathe
corroborates theassertion.
aforementioned aforementioned assertion.included
The microgrid The microgrid included
in the study in the study
generated 1000 generated
kWh/day
1000
via kWh/day
HOMER Provia HOMER
software andPro software and
AHP‑based AHP-based
multi‑criteria multi-criteria
decision making.decision
Energy making.
sources
Energy PV,
include sources
wind, include PV, wind,
micro‑hydro, micro-hydro,
bio‑gas generation, bio-gas generation,
and battery andAll
storage. battery
sourcesstorage.
were
All sources were
cost‑effective and cost-effective
included in the and included
design. in the design.
Microgrid’s Microgrid’s
levelized levelized
cost is 0.0694 cost is
USD/kWh
via HOMER
0.0694 USD/kWhPro. The results clearly
via HOMER showcased
Pro. The results the effectiveness
clearly showcased of the
microgrids in term
effectiveness of
microgrids in term of supplying energy to remote areas [36]. Moreover, in recent times, a
highly productive model was introduced by researchers for interconnected microgrids to
obtain 100% utilization of renewable energy resources named the Hybrid Information
Gap Decision Theory (IGDT)/Stochastic approach. The model involved using trans-active
technology to trade energy in a local market to maintain a dynamic energy balance. The
Processes 2024, 12, 270 9 of 42

of supplying energy to remote areas [36]. Moreover, in recent times, a highly productive
model was introduced by researchers for interconnected microgrids to obtain 100% utiliza‑
tion of renewable energy resources named the Hybrid Information Gap Decision Theory
(IGDT)/Stochastic approach. The model involved using trans‑active technology to trade
energy in a local market to maintain a dynamic energy balance. The system addressed
the intermittency of RERs using information‑gap decision and stochastic programming,
incorporating risk‑averse and risk‑seeker schemes. The model was tested using the IEEE
14‑bus model, which verified its effectiveness in achieving an 18.34% cost reduction com‑
pared to the base model [37]. Energy management (EM) is of paramount importance in
microgrids (MGs) as it guarantees the secure and effective utilization of renewable energy
resources (RERs). A smart microgrid, which consists of communication devices, electri‑
cal loads, electrical vehicle loads, and distributed energy resources (DERs), necessitates
the implementation of all‑encompassing approaches to tackle technical, environmental,
and economic obstacles. A critical and comparative analysis of EM strategies in this con‑
text classifies EMS according to supervisory control, operating time platform, decision‑
making approach, and optimal decision making and demand response strategies. Diverse
uncertainty quantification strategies for managing the intermittent character of renewable‑
based DERs are also emphasized. Considerations such as the objective function, practica‑
bility, suitability, and tractability influence the choice of decision‑making approach. For
quantifying uncertainty, scenario generation and reduction has become a widely adopted
method. In the realm of demand response strategies, incentive‑based DSM is the prevail‑
ing approach; however, price‑based DSM distinguishes itself through its straightforward
modeling and implementation. Furthermore, meta‑heuristic algorithms and multi‑agent‑
based approaches are superior in decentralized energy management, supporting precise
scheduling and forecasting algorithms. Despite limitations in demand management and
forecasting, they facilitate collaborative energy sharing in community microgrids, offering
end‑to‑end energy [38].
Recognizing the pivotal role of energy management systems (EMSs), societies are in‑
creasingly prioritizing their development to achieve sustainable energy goals. Microgrids
(MGs), owing to the stochastic nature of electrical loads and renewable sources, necessitate
EMSs for optimized operations, planning, control, monitoring, and energy conservation.
Over the period from 2009 to 2022, the focus on EMS strategies for MGs has encompassed
diverse aspects. This includes database preparation, classification of EMS methods based
on technique, control strategies, and structure, as well as discussions about potential direc‑
tions for future studies. Industries and academia alike are directing their attention towards
energy management research to enhance the efficiency, manageability, and sustainability
of the energy sector [39].
Renewable energy systems have become increasingly significant due to the increasing
global energy demand, which is primarily propelled by population growth and technolog‑
ical advancements. However, their intermittent nature complicates their design and oper‑
ation. To address this, a sophisticated energy management strategy (EMS) is developed
in [40] by the authors, with a real‑time monitoring interface to optimize the functioning
of a hybrid microgrid. It ensured stable voltage, balanced power supply, and frequency
stability. Moreover, the system includes backup electrical infrastructure, AC/DC loads,
hybrid sources, and a Li‑ion battery storage system. The Python platform and GUI soft‑
ware facilitated efficient data analysis, demonstrating the effectiveness of the proposed
EMS and monitoring interface. Few optimization techniques are also implemented within
microgrids to tackle the challenges, such as mixed‑integer programming, which is a fre‑
quently employed technique owing to its straightforwardness and power management so‑
lution [41].

3. Demand Response Strategies

Demand response (DR) strategies are dynamic methods used in energy management
to optimize electricity consumption and improve grid reliability. They address challenges
 Processes 2024, 12, 270 10 of 42

pertinent to peak demand, grid instability, and renewable energy integration. In DR mech‑
anism, time‑of‑use pricing is a valuable factor that regulates consumers’ energy consump‑
tion by shifting energy‑intensive activities to off‑peak hours, reducing grid strain. Critical
peak pricing introduces higher rates during critical peak events, encouraging non‑essential
use. In order to automatically optimize energy consumption, automated demand response
(ADR) is widely preferred, and it uses advanced automation systems to respond to grid
signals, allowing real‑time adjustments without human intervention. Load shifting in‑
volves transferring energy‑intensive activities to off‑peak hours, while incentive programs
reward consumers for reducing consumption. Moreover, Vehicle‑to‑Grid technology al‑
lows electric vehicles to discharge stored energy back to the grid during peak demand.
These strategies contribute to a more flexible and responsive energy system. In order to
optimize electricity usage in response to grid conditions, pricing signals, and other con‑
siderations, demand response (DR) methods are essential parts of contemporary energy
management systems. Improving grid resilience, controlling peak demand, and encour‑11 of 44
Processes 2024, 12, x FOR PEER REVIEW
aging a more economical and ecological use of energy resources are all made possible by
these tactics. Figure 5 shows the different types of demand response schemes. Demand
response is becoming popular as it has been proven very useful in recent implementations,
and its
There isusefulness
a need foris more
now unquestionable. There is and
adequate approaches a need for more
models adequate the
to address approaches
small need of
and models to address
consumers and producers. the small need of consumers and producers.

Figure
Figure5.5.Types
Types of demand
demandresponse.
response.

By using
By using hourly
hourly pricing
pricingandandpeak‑power‑limiting
peak-power-limiting techniques, a residential
techniques, energyenergy
a residential
management system framework was created to optimize day‑ahead appliance scheduling.
management system framework was created to optimize day-ahead appliance
All assets that can be controlled were modelled, such as distributed generation, electric
scheduling.
cars, energy All assets
storage thatthermostatically
systems, can be controlled were modelled, controlled
and non‑thermostatically such as appli‑
distributed
generation,
ances, and electric automobiles. In this regard, bidirectional energy flow was taken and
electric cars, energy storage systems, thermostatically into non-
thermostatically controlled
consideration through improved appliances,
choices for EVandandelectric automobiles.
ESS operation. A practical In test
this
caseregard,
bidirectional
was showcased energy flow was
to examine taken into
the efficacy consideration
of the through
model, utilizing improved
information, choices
and much bet‑for EV
ter results were found compared to previous energy utilization trends [42].
and ESS operation. A practical test case was showcased to examine the efficacy of the Dynamic pric‑
ing is real‑time
model, utilizingpricing (RTP) and
information, andmainly
muchdepends on two were
better results factors: one iscompared
found efficient energy
to previous
energy utilization trends [42]. Dynamic pricing is real-time pricing (RTP) and mainly
depends on two factors: one is efficient energy management, and the other is generic DR.
There was an observation upon the RTP-based DR program that it decreased both the
uncertainty in price and the electricity consumption [43].
Processes 2024, 12, 270 11 of 42

management, and the other is generic DR. There was an observation upon the RTP‑based
DR program that it decreased both the uncertainty in price and the electricity consump‑
tion [43].
Furthermore, collaboration of private microgrids (PMGs) with a robust decentralized
model for a distribution company (DISCO) can also help handle uncertainty and opera‑
tional cost. A test system of modified IEEE 33‑buses, including the distribution network
and three PMGs, is utilized to prove the usefulness of the proposed strategy [44]. More‑
over, a flexible system of compressed air energy storage (CAES) can be a better choice
due to its high ramp rate and reduced impact on the cost of the power system. Demand
response programs are also deemed suitable solutions as part of practical approaches to
deal with peak‑demand challenges.
In conventional power system demand response, customers adjust their initial power
consumption pattern in reaction to energy price or incentives in order to obtain additional
advantages. The research on the effectiveness of multi‑energy systems clearly delineated
that their emergence enabled the integration of various sources of energy, such as electric‑
ity, heat, and natural gas. This integration allowed all energy consumers to actively engage
in demand response, giving rise to the idea of integrated demand response (IDR). Within
the IDR framework, energy users had the ability to respond by not just decreasing their en‑
ergy usage or selecting to consume energy during non‑peak hours, but also by altering the
type of energy they consume. The research under discussion also provided an overview
of the classic demand response in power systems [45].
Electrical heating devices solve the problem in the renewable energy system by mod‑
ulating heat pumps. Furthermore, they can change their output according to the demand
curves. Heuristic control techniques to modulate heat pumps can minimize heating costs
and surplus energy. Compared to the other techniques, this strategy reduced heating costs
by 4.1% and 13.3%, and the improvements in surplus energy were between 38.3% and
52.6%. A 40‑building system was used for the test using a control and communication
architecture to maintain inhabitants’ privacy, and the results verified the strategy’s impor‑
tance [46].
The consumption of fossil fuels poses some environmental threats, such as global
warming and CO2 emissions. The prime purpose of using demand response programs
(DRPs) is to reduce real‑time pricing, peak‑time pricing, incremental block rate, day‑ahead
pricing, etc. Furthermore, some challenges in implementing DRPs mainly include the will‑
ingness of customers to participate as they lose their comfort zone [47]. Artificial intelli‑
gence (AI) algorithms and battery banks can deal with peak‑hour demand curves. The
authors assessed the performance of different schemes in implementing the demand re‑
sponse algorithms in residential buildings. Two algorithms were implemented: one rule‑
based approach and another predictive‑based approach to control a system with a thermal
storage system and heat pumps. These algorithms assessed the demand response price
scheme and observed the reduction in electricity end‑user expenditure, such as 20.5% us‑
ing a rule‑based technique and about 41.8% using the predictive algorithm. Similarly, the
utility generation‑based cost was 18.8% using the rule‑based technique and 39% using the
predictive algorithm. An algorithm‑based system was recommended due to its reliability
and desired outcomes [48]. There is a gradual increase in demand for energy in the world,
which forces us to opt for renewable energy resources. However, sometimes, in the case
of renewables, variability and unpredictability in power generation unduly amplify. To
solve these problems, customers approve the demand response (DR) mechanism world‑
wide. Besides that, due to the similarity of the gas system with the electricity network,
the DR actions are applied to it. The proposed scheme involves management actions like
balancing, pipeline congestion or shortage of underground storage, and the use of all DR
products developed for power system and communication, and metering also needs to
achieve optimum reliability in the gas sector [49].
Processes 2024, 12, 270 12 of 42

3.1. Demand Response Strategies

In the DR program, incentive‑based demand response (IBDR) is widely utilized in
light of technological requisites. Some types of IBDR are direct load control, interruptible
and manageable services, and demand bidding strategies [50], as well as optimal power
flow (OPF) for IBDR, which reserves resources during normal and unusual conditions
based on customer appliances. MG aims to improve security and reliability and maximize
overall profit under normal and emergency operating conditions. There was a 4% and
2.7% increment in the profit of the operator, and the improvement in reliability indicator
is recorded as 60% and 56%, respectively, by applying the IBDR model [51].

3.2. Price‑Based Demand Response

The price‑based demand response scheme (PBDR) has numerous types, such as time
of use (ToU), critical peak pricing (CPP), and real‑time pricing (RTP). These are all based
on the tariff variation throughout the day. The tariffs vary during peak and off‑peak hours.
After extensively reviewing the working mechanisms of PBDR, shortcomings such as poor
quality turn out to be the main problem in the distribution network. To overcome the
abovementioned problem, rooftop and on‑load changing procedures are adopted for en‑
ergy management. The on‑load tap changer (OLTC) method minimizes the compensation
cost of voltage management.
The modified particle swarm optimization algorithm (MPSO) switches combinations
between household appliances and OLTC tap position DR integrated with OLTC. Addi‑
tionally, effective improvements in network voltage and PV hosting capacity are also ob‑
served by using independent phase tap control. This scenario is applied on a low‑voltage
network. In the future, it can be applied to medium‑voltage networks as well [52]. A virtual
power player was introduced that efficiently reduces operational costs by considering the
trend in consumption shifting. This methodology was tested on three different scenarios
including 214 customers and four types of distributed generation systems for 96 periods.
The results authenticated the usefulness of this novel approach [53]. The challenges were
faced by electrical networks due to an increase in electricity demand and intermittent re‑
newable energy resources like photovoltaic (PV) systems. The study proposed a method‑
ology to encourage residential prosumers to use price‑based demand‑side management
(DSM) techniques. The methodology was tested on a pilot network of 300 residential pro‑
sumers with PV systems on their roofs. The results showed a reduction in seasonal peak
consumption ranging from 1.03% to 3.19% and a 2% reduction in total consumption. The
analysis showed a net benefit of EUR 4.09 million for 15 years. This methodology can be
universally applied to manage demand and address reliability and congestion issues in
electrical networks [54].

4. Microgrid Energy Storage System

The role of battery storage systems in microgrids is to improve their reliability and
operational cost. Proper location and size are also significant for achieving the desired
outcome through BESS. Besides many other benefits, ESS is used for ancillary services,
voltage regulation, frequency regulation, etc.
Lead acid and lithium‑ion batteries are used by applying GA algorithms for optimal
power flow. The results of the simulation showed that lithium‑ion BESS was more re‑
liable, and the results were tested with 1.2 MW and the expected case of 2.3 MW solar
installation system expected if a reduction in the cost of lithium‑ion BESS is expected in
future [55]. Historical data of the real grid and generation capacity from renewable energy
resources should be known to handle uncertainties. Proper planning and operation of the
distribution network are also necessary. Total investment and operational costs are taken
as the objective function, and different schemes are implemented into the distributed test
system, and results prove that the joint utilization of EESs and RESs are useful for cost
reduction and fluctuation handling [56]. Optimal energy management of electrical energy
storage systems (ESSs) through a bi‑level framework depends upon two factors, i.e., min‑
Processes 2024, 12, 270 13 of 42

imizing the cost and maximizing the profit and the charge/discharge scheduling of ESSs.
The model provides the optimal operation strategies for both the ESS and the power sys‑
tem [57].
The battery is an essential part of microgrids that run independently off the grid be‑
cause renewable energy sources have significantly shorter operational hours. To reduce
the running expenses of MGs, the optimal battery energy system size must be determined.
Convex optimization techniques are used to determine the BESS size in a two‑step cost‑
based approach. In the first step, a unit commitment (UC) issue is determined. The second
phase was determining the BESS size while keeping operational and physical constraints
using convex optimization and relaxation techniques. The aforementioned issue was re‑
solved using MATLAB’s CVX toolbox, and the outcome was better than the PSO and GA
methods [17]. A rise in the popularity of photovoltaic (PV) systems, wind turbines, and
battery energy storage systems (BESS) can be attributed to the increasing need for electric‑
ity, the rapid depletion of fossil fuels, and their harmful environmental effects. Due to its
rapid responsiveness, controllability, adaptability, eco‑friendliness, and geographical in‑
dependence, the BESS is more attractive. The authors investigated the BESS in addition to
the need for optimal BESS sizing approaches.
Future research should be conducted to build productive, efficient, long‑lasting, and
effective battery energy storage for a sustainable environment [58]. To manage renewable
energy sources in microgrids, researchers suggest using battery energy storage systems
(BESSs) due to their efficiency and adaptability. However, the BESS is grid‑connected and
requires a local voltage source (VS) as a reference to function. The study proposes a so‑
lution to operate the BESS at the local VS reference when the grid and renewable sources
are unavailable by using the Simulink/MATLAB platform. Simulation results show that
a seamless power supply (UPS) with 30–45% BESS capacity can be used for VS during
150–200% overload scenarios [59].
State of charge (SoC) is necessary because sometimes it becomes very difficult to con‑
trol renewable energy sources in microgrids. To resolve this issue, a battery as an energy
storage device is offered as a solution because of its versatility, efficiency, and high energy
density. In contrast, BESS is a grid‑connected system that cannot function without the
local voltage source (VS), which functions as a reference. Using the Simulink/MATLAB
platform, a method for operating the BESS at local VS in the absence of the grid and renew‑
able energy sources is described. Simulation results indicate that a backup power supply
(UPS) with 30‑45% capacity of the BESS can be selected for VS under 150‑200% overload
scenarios. There was a need for a constant state of charge for all battery energy storage
systems (BESSs) to prevent excessive use of some BESS units and extend BESSs’ life. SoC‑
based droop control was analyzed on a multi‑agent system, a proportional integral (PI)
with the average SoC employed in P‑f droop for the regulation of charging and discharg‑
ing BESS units. Consequently, regardless of the size of the BESS units, the SoC progresses
toward equalization. The effectiveness of the proposed technique was evaluated based
on a variety of case scenarios, and the outcomes met with approval [60]. To ensure busi‑
ness continuity during a grid outage, a grid‑connected Microgrid (GCMG) with a photo‑
voltaic (PV) system and a battery energy storage system (BESS) was designed. The system
employed a novel multi‑objective strategy for optimal GCMG operation considering oper‑
ational cost and system robustness. Optimization was achieved through multi‑objective
particle swarm optimization (MOPSO), which considered electricity cost and power out‑
age during a grid outage as resilience indices. Numerical simulation and Pareto solutions
were used to locate the optimal cost‑to‑resilience ratio. This approach proved effective in
ensuring optimal GCMG performance [18].
The smooth operation of an isolated microgrid system requires a plan for generation
scheduling and demand‑side control. Electric car aggregators, hybrid renewable energy
sources, solar panels, wind turbines, battery banks, and conventional generators were stud‑
ied as system components. A multi‑objective optimization model was suggested for such
a system, with battery life extension on one side, energy generation cost of sources and
Processes 2024, 12, 270 14 of 42

recharge cost of a vehicle on the other, and demand‑side management (DSM) introduced
via plug‑in electric vehicles (PEVS). Using a non‑dominated Sorting Genetic Algorithm‑II
(NSGA‑II), optimal operating circumstances and results validated the validity of this tech‑
nique [19]. Nowadays, the world is focusing on economic power generation and renewable
energy resources that play a key role in it. Due to the limitations of transmission lines, the
cost and scarcity of fossil fuels force us to look for uninterrupted power sources by us‑
ing battery banks and renewable energy systems in smart grids. In Ref. [61], the authors
concentrate on the technology, size, efficiency, cost, and recycling of batteries utilized as
prime energy storage devices. Optimization and probabilistic methods in battery sizing
are observed, considering elements such as deterioration rate, battery placement, and reli‑
ability, which produce a cost‑effective solution for the smart grid system. In addition, the
researchers explain the batteries’ potential to be recycled and their environmental impact.
Energy storage (ES) has emerged as a crucial component of energy systems and is crucial
in advanced smart grids. Smart grids share ES to strengthen the resilience and dependabil‑
ity of the energy system. Improved utilization of ES requires energy storage design and
control mechanisms instead of standard sharing approaches.
A detailed survey encompassed all the research methodologies proposed in the previ‑
ous decade for ES sharing and described their potential and adoption challenges [62]. The
authors focused on battery storage device technology, size, efficiency, cost, and recycling
in their research. Optimization and probabilistic methods in battery sizing, considering
factors such as deterioration rate, battery placement, and dependability, resulted in a cost‑
effective solution for the smart grid system. Energy storage (ES) has been developed as an
integral part of energy systems and is critical in advanced smart grids. Smart grids share
ES to increase the energy system’s resilience and dependability. Enhanced utilization of ES
necessitates design and control methods for energy storage instead of typical sharing ap‑
proaches. A comprehensive survey of all research approaches developed in the preceding
decade for ES sharing and describing their potential and adoption problems was given [63].
Additionally, a distributed cooperative control technique for freestanding DC microgrids
(DCMGs) is necessary when coupled with several photovoltaic (PV) energy systems at‑
tached to the DCMGs. This technology mitigates intermittent power swings by providing
steady power generation from PV systems. It also contributes to cost reduction by moni‑
toring and evaluating energy sources to reduce the quadratic cost function. By minimizing
charging stress, the effectiveness of the suggested solution increases the lifespan of battery
energy storage systems (BESSs) [64].
The resilient power supply supplies electricity during natural disasters and grid fail‑
ures by utilizing a redundant structure and predictive control strategy, attracting the atten‑
tion of the power system. As power outages can result in provider losses, incorporating
renewable energy sources, natural gas networks, and electrical grid supply and control
techniques into a microgrid can make a system more resilient. This study describes a con‑
troller based on artificial intelligence and simulates the information and communication
technology (ICT) system as an uninterruptible power supply in emergencies. Its potential
is evaluated by improving its resilience in terms of survival time under defective condi‑
tions [65]. An optimal battery energy storage system (BESS) design and virtual energy
storage system (VESS) can significantly achieve microgrid stability and cost savings. The
appropriate energy size of a two‑layer BESS in a smart microgrid with a high penetration
of solar systems is examined. The initial BESS size is determined based on the VESS role in
the first layer. In the second layer, the optimal dispatch of energy resources is computed
based on the optimal BESS size and system limitations. Markowitz’s mean‑variance the‑
ory was utilized to evaluate the risk of system cost variability with load fluctuation ranging
from 70% to 130% and PV generation from 40% to 100%; resultantly, it was established that
the BESS was less impacted by PV generation [66].
Due to the scarcity of fossil fuels and the attendant environmental concerns, the gener‑
ation has shifted towards renewable energy technologies. Microgrids with scattered gener‑
ation and interconnected loads will be helpful in locations where grid functionality cannot
Processes 2024, 12, 270 15 of 42

be expanded. The ideal scheduling of an interconnected 82 kW load with microgrid and

distributed generation is shown to reduce fuel expenditures. The literature describes nu‑
merous optimization procedures, such as particle swarm optimization (PSO), Whale Op‑
timization Algorithms (WOA), Grey Wolf Optimization (GWO), and Modified Grey Wolf
Optimization (MGWO). MGWO resulted in superior cost optimization compared to all
other algorithms and conventional methods [67]. In general, there is always an approx‑
imate match between power generation and consumption, and with the development of
battery storage technologies, the power system needs BES. The analysis of technical and
economic benefits renders deep insights into the effects of BES on the load factor, volt‑
age index, and network losses in power systems. The optimal power flow (OPF) model
is also suggested for sizing and placing a battery bank in a power system. The model’s
efficacy and availability are evaluated through its application in a model [68]. For optimal
energy management, various simulation tools were used and some of them are mentioned
in Table 3.

Table 3. Simulation tools used in the energy management system of microgrids.

References Tools Objectives and Applications

MATLAB is a powerful mathematical computing platform with a wide range
of toolboxes for scientific and engineering applications, including BESS. It can
[11,15,17,59,69–77] MATLAB/Simulink
be used for modeling battery behavior, analyzing system performance, and
developing control algorithms.
Simulation software, optimizing microgrids, evaluating renewable energy
[24] HOMER Pro sources, selecting energy storage systems, and analyzing microgrid
performance and economics.
MAGNET—Infolytica is a comprehensive software suite for designing and
analyzing electromagnetic devices, including batteries. Understanding the
[76] MAGNET—Infolytica
strengths and limitations of each tool can help make an informed decision and
leverage their capabilities to design and optimize effective BESS solutions.
GAMS is a high‑level optimization modeling language used for solving
complex problems in various domains, including BESS design. It has
[78] GAMS
powerful optimization capabilities, flexible model formulation, and
integration with other software tools.
PSCAD is a power system simulation software designed for analyzing the
dynamics and stability of electrical grids. It has highly accurate simulations
[79] PSCAD
and detailed modeling capabilities, but it may not be suitable for the economic
or design aspects of BESS.

The sturdy correlation between the Micro Gas Turbine Generation System (MTGS)
and the battery energy storage is crucial to the system’s stability in an isolated system. In
another study, a control approach based on the rapid reaction of the battery is proposed.
A seamless switching control strategy is presented for MTGS and battery storage power
sources to prevent voltage quality issues during the load changeover between supplies.
A PSCAD simulation validated the proposed technique, and the result matched the de‑
scription [79]. The economic advantages of solar and wind energy are gaining traction,
but operational issues in grid‑connected systems require coordination between solar and
battery storage. To address this, a maximum power point tracking (MPPT) controller is
used to regulate solar generation. This model is simulated in MATLAB‑Simulink for two
scenarios: constant load with variable irradiation and changeable load with variable irra‑
diance. The results demonstrate the model’s effectiveness in maintaining voltage, power
balance, and frequency in the system [72]. The power quality (PQ) of a microgrid combin‑
ing a photovoltaic (PV) system and a battery storage system (BSS) is improved by using
the shunt hybrid active filter in a three‑phase system with a PV system and a BSS shunt
hybrid active filter (SHAF). The proposed technique was used to eliminate harmonics, reg‑
ulate reactive power in the system, and maximize the PV array’s power output. SHAF
Processes 2024, 12, 270 16 of 42

uses the maximized M. Kalman filter for reference current control and hysteresis of the
current control (HCC) while generating switching signals [73]. Moreover, for multi‑carrier
energy hubs, three sources are included in the optimal scheduling: distributed generating
systems (DGs), considered to be micro‑combined heat and power (MCHP) units; battery
electrical storage systems (ESSs) and electrical heaters; absorption chillers; and heat pumps.
A mixed‑integer non‑linear optimization problem was used to describe the optimal man‑
agement and scheduling of energy resources in exchange with distribution networks. The
optimum operating points of DG units and ESSs were determined using a cost‑effective
scheme. In addition, the cost reduction in ESSs was studied for short‑term scheduling.
The simulation findings demonstrate that utilizing optimal scheduling with energy stor‑
age options improves the economic operation of the system by meeting all of its needs [25].
Microgrids (MGs) are increasingly popular due to their ability to deliver reliable and ro‑
bust power when combined with battery energy storage systems and renewable energy
sources. Current reliability measures, like expected energy not supplied (EENS) and loss
of load expectation (LOLE), may not provide a comprehensive assessment of MGs’ de‑
pendability and robustness. Additionally, three new indices for MGs were introduced:
(1) Microgrid Resiliency Index (MRI); (2) Microgrid Renewable Energy Availability Index
(MREAI); and (3) Microgrid Renewable Expected Energy Index (MREEI). These indices
provide additional data beyond EENS and EENS, highlighting the impact of renewable
energy sources on energy losses and availability in MGs [80]. The growing use of intermit‑
tent renewable energy resources presents challenges for traditional bulk power systems
and microgrids. To address this, flexible components like demand response and battery
energy storage systems are integrated using a mixed‑integer programming strategy in [81].
Moreover, an incentive‑based demand response model and comprehensive model is pre‑
sented to enhance the vanadium redox battery’s efficacy and dependability. Simulation
outcomes are compared with a genetic algorithm approach to confirm the reliability. In
microgrids, the battery energy storage system (BESS) is an indispensable energy storage
technology; however, frequent replacements are financially burdensome due to its short
lifecycle and substantial cost. To overcome this issue, a method for optimizing capacity
and cost analysis is taken into account in [82] to increase the lifespan of the BESS. To esti‑
mate the lifetime of the BESS, the weighted throughput method is utilized to optimize the
battery capacity, and the particle swarm optimization algorithm is also implemented. The
optimal adjusting factor of 1.761 produces the lowest total net present value of 200,653 USD,
thereby reducing overall operation expenses for the duration of the project. A new method‑
ology is tested in [83] for using battery storage units (BSUs) in microgrids (MGs) to perform
energy arbitrage and supply/demand matching. The goal to reduce power discrepancies
between demand and renewable energy systems (RESs) and gas emissions is addressed by
the authors. The study considered uncertainties in wind speed, solar irradiance, and tem‑
perature from RESs’ stochastic output. Two metaheuristic optimization algorithms, Moth‑
Flame Optimization (MFO) and Hybrid Firefly and particle swarm optimization, are used
to resolve the issue.

4.1. Flywheel Energy Storage System

For energy storage types, the flywheel energy storage system is based on rotational en‑
ergy. The rotational stored energy converts into electrical energy. In the microgrid energy
system, flywheel attracts many users due to its prominent characteristics. Different types
of technologies utilized in flywheel energy storage systems (FESSs) are discussed. The
materials used in producing FESSs and an overview of the uses of FESSs in grid leveling
are also discussed. Using the above discussion, the implementations for cost reduction
in permanent magnet synchronous machines and the operational temperature for these
machines can also be analyzed. Similarly, using renewable energy resources like wind
generation, solar generation, ocean wave energy generation, and geothermal energy has
an environmentally friendly nature and is a cost‑effective solution [84].
Processes 2024, 12, 270 17 of 42

It also posed some problems to the grid, such as generation fluctuations in weather,
environmental conditions, destabilization of the grid, grid error, and grid collapse. Fly‑
wheel energy storage systems are used in microgrids as a regulation element. The results
confirmed the role of the FESS, its governing principles in the microgrid, and its indispens‑
able role in science and technology [85]. The authors introduced energy‑saving methods
for a particular duty cycle and effective estimation‑related issues with flywheel energy stor‑
age systems in pillar rolling mills. By calculating loss components in electric motors and
knowing the dependency of motor losses on the moment of inertia, the analysis of flywheel
usefulness is made, and the results declare that the implementation of a flywheel system
will reduce the losses of energy in heavy load charts. The analysis used the function of
dependency on the losses in electric motors, both electrical and mechanical, considering
the moment of inertia as a function [86].
Processes 2024, 12, x FOR PEER REVIEW 18 of 44
The development of a digitalized vector control system for FESSs employing perma‑
nent magnet‑assisted synchronous reluctance machines (PMA‑SynRM) has been accom‑
plished. A proposed
accomplished. filter was
A proposed filterimplemented
was implementedto remove offsetoffset
to remove and and
deaddead
zonezone
effects from
effects
current sensor signals while maintaining their amplitude. The efficacy of
from current sensor signals while maintaining their amplitude. The efficacy of the adapted the adapted FESS
drive
FESS control system was
drive control systemconfirmed through simulations
was confirmed and experimental
through simulations outcomes [87].
and experimental
Similarly, optimization and analysis of a flywheel energy storage
outcomes [87]. Similarly, optimization and analysis of a flywheel energy storage system that actssystem
as a dy‑
namic voltage regulator (DVR) were also carried out. The primary
that acts as a dynamic voltage regulator (DVR) were also carried out. The primary objectives were to de‑
sign an FESS with a natural resonance frequency within the operational
objectives were to design an FESS with a natural resonance frequency within the frequency range
and to demonstrate
operational frequency a matrix
rangeconverter structure for bidirectional
and to demonstrate power conversion.
a matrix converter structure forTo
achieve this, apower
bidirectional specificconversion.
motor or generator design
To achieve this,isarequired, with aor
specific motor permanent
generatormagnet
designsyn‑is
chronous motor (PMSM) being the preferred choice. Frequency
required, with a permanent magnet synchronous motor (PMSM) being the preferred analysis was performed
using
choice.SolidWorks,
Frequencyand a PMSM
analysis waswasperformed
constructedusingusing SolidWorks,
MATLAB‑Simulink and a and MAGNET‑
PMSM was
Infolytica
constructed using MATLAB-Simulink and MAGNET-Infolytica to match thearematrix
to match the matrix voltage level [80]. Some energy storage systems shown
in Figurelevel
voltage 6. [80]. Some energy storage systems are shown in Figure 6.

Figure 6. Types of energy storage system.

Figure 6. Types of energy storage system.

The battery
The battery flywheel
flywheelcompound
compoundenergy
energysystem
systemmodels
models were
were developed
developed byby taking
taking into
into account the battery’s state of charge (SOC) and open-circuit voltage
account the battery’s state of charge (SOC) and open‑circuit voltage (OCV), along with the(OCV), along
with the flywheel’s
flywheel’s rotational rotational
speed andspeedmotorand
speed,motor speed,
as well as well
as heat loss.asEnergy
heat loss. Energy
optimization
optimization in GA is used to determine the appropriate electric braking
in GA is used to determine the appropriate electric braking torque for recovered braking torque for
recovered braking energy under varied scenarios. A double neural-network-based
energy under varied scenarios. A double neural‑network‑based adaptive PI vector control
adaptive PI
approach vector
was control approach
implemented to governwas
theimplemented to govern
flywheel’s rotational the flywheel’s
speed. rotational
The acquired results
speed. The acquired results demonstrated a 1.17-fold increase in recovered
demonstrated a 1.17‑fold increase in recovered energy, a 42.27 percent decrease in the energy, a 42.27
max‑
percentcharging
imum decreasecurrent,
in the maximum charging current,
and an improvement in theand an improvement
flywheel’s stability,in the flywheel’s
which gave refer‑
stability,
ences which gave
for designing references
energy for designing
management systems energy management
for electric vehicles systems for electric
[88]. In peak shaving
vehicles [88]. In peak shaving services, the authors proposed a concept of FESS deployed
at the transformer substation. The power set points of the flywheel were determined via
a lexicographic optimization approach that minimized power losses and transformer
power restriction violations. In addition, the maximum power was determined and
integrated using the convex functions of the flywheel’s power losses. In this regard, two-
Processes 2024, 12, 270 18 of 42

services, the authors proposed a concept of FESS deployed at the transformer substation.
The power set points of the flywheel were determined via a lexicographic optimization
approach that minimized power losses and transformer power restriction violations. In
addition, the maximum power was determined and integrated using the convex functions
of the flywheel’s power losses. In this regard, two‑level hierarchical control architecture
was devised for the transformer flywheel system to address model flaws and predictive
mistakes. At a higher level, linear programming was used to solve the lexicographic opti‑
mization technique, while at a lower level, real‑time measurements were used to correct the
power set points. The proposed controllers are integrated into the experimental test setup
using a software platform to demonstrate their efficacy. Simulation and experimental find‑
ings substantiated the flywheel system’s modeling, control, identification, and operation
for peak shaving services [89]. Table 4 shows the comparison of energy storage system
used for the optimization of smart microgrids.

Table 4. Comparison of energy storage system.

Energy
References Storage Pros Cons Reliability Cost Challenges Applications
System
Energy storage
Fire risks, system in grids,
High
Lithium‑ion Shortened Medium resource portable electronics,
[90,91] density of High
Batteries lifecycle to high availability, electric vehicles,
energy
scalability telecommunications,
backup power
Emergency
lightening,
automotive starting
Maintenance
Lead‑acid Low density Low to batteries,
[91] Low price Moderate and limited
batteries of energy medium uninterruptible
lifecycle
power supplies
(UPS), solar energy
storage
Microgrid support,
Lower renewable
Long Efficiency
density of integration, electric‑
lifecycle Medium and complex
[92] Flow batteries energy Moderate vehicle‑charging
and to high system
compared to infrastructure,
scalability design
Li‑ion islanded power
systems
Environmental
Site‑specific Emergency power
impact,
Pumped hydro High effec‑ (needs Medium backup, load
[93] Moderate limited use
storage tiveness variations in to high balancing, peak load
in terms of
elevation) shifting
geography
Grid energy storage,
Site‑specific peak shaving, grid
High Energy
Compressed (needs balancing and
efficiency Medium losses,
[94–97] air energy appropriate Moderate frequency
and to high geographical
storage (CAES) underground regulation,
Scalability restrictions
formations) transmission and
distribution Support
Processes 2024, 12, 270 19 of 42

Table 4. Cont.

Energy
References Storage Pros Cons Reliability Cost Challenges Applications
System
Grid stabilization,
microgrid Support,
High Limited time Cost, high
Flywheel frequency
[95,97] density of for energy High High rotational
energy storage regulation, power
power storage speeds
quality
improvement
Potential
Reduced
for inex‑
round‑trip Thermal Solar thermal power
pensive
Thermal efficiency in Medium losses, plants, industrial
[95,98–100] materials High
energy storage relation to to high material processes, district
and long‑
alternative selection heating
duration
technologies
storage
High‑power
applications,
regenerative braking
Quick Less energy
Limited in vehicles, power
charging density
[95,101,102] Supercapacitors Moderate High density of tools and portable
and dis‑ compared to
energy, cost electronics, backup
charging batteries
power for
communication
systems

4.2. Role of Electrical Vehicles in Storage Systems

In consideration of the system consisting of the energy storage system (ESS), electric
vehicle (EV), and solar generation to fulfill energy demand, an optimal energy manage‑
ment system (EMS) for effective energy harvesting from available energy resources was
proposed. MATLAB was used for linear optimization problems, and the simulations re‑
sults showed a reduction of 45% in operational costs and a decrease of 45.58% in energy
consumption costs and 19.33% in load [103]. Hybrid electric vehicles (HEVs) and plug‑in
HEVs (PHEVs) are advancements in the intelligent transportation system (ITS) and allow
performance improvement in energy management systems (EMSs). The descriptive analy‑
sis of EMSs highlights the main differences between HEVs/PHEVs and internal combustion
engine (ICE) vehicles. The structure of EMSs is categorized into three instances: single‑
vehicle, two‑vehicle, and multiple‑vehicle instances. Hence, eco‑driving is a feature used
by vehicles to communicate with Vehicle to Infrastructure (V2I) technologies [104]. The
article also presents a unique hybrid control system that uses the battery’s state of charge
(SOC) and hydrogen level. The interconnection and damping assignment passivity‑based
control (IDA‑PBC) technique was used to develop this strategy for load power sharing be‑
tween sources. The PBC non‑linear powerful technique, artificial neural networks (ANNs),
and system energy information were used as references to validate the proposed approach.
The article provides modeling, control, simulation stability proof, and experimental au‑
thentication of the entire solution, with testing results confirming the effectiveness of the
proposed method [105]. It can be referred to as the urbanization of smart cities and the shift
toward electric vehicles (EVs) as alternate transportation. It significantly reduces green‑
house gas emissions, so the smart grids with renewable energy resources (RESs) with their
charging structure are eligible for a smart solution. The article discusses EVs and micro‑
grids powered by renewable energy sources. The section on EVs covers the development
of EV‑charging infrastructure and innovative applications, such as Vehicle‑to‑Grid (V2G)
and Vehicle‑to‑Home (V2H) technologies. The authors also introduced an energy man‑
agement system (EMS) that enhances the dependability of the charging infrastructure. A
Processes 2024, 12, 270 20 of 42

real‑time stochastic optimization technique was developed to reduce cost emissions and
maximize the utilization of clean energy resources in a smart power grid with grid‑capable
vehicles (GVs) and renewable energy resources [106].
Dynamic stochastic optimization (DSO) was found to be effective in assuming the
grid‑capable vehicle as a small portable power plant (SP3) and the smart parking lot as a
virtual power plant (VPP). This approach led to cost and emission reduction, an increase in
the reserve and dependability of the smart grid, and a levelized load demand curve when
millions of GVs were integrated [21].
A technique for optimizing energy management was implemented, which uses plug‑
in electric vehicles and dispersed energy sources as inputs. To avoid overcharging and
over‑discharging, the model uses the engine’s fuel consumption, battery charge and dis‑
charge, and battery state of charge as constraints. The model is solved using a multi‑
objective optimization approach and is compared with other methods, such as particle
swarm optimization and traditional grey wolf techniques. The results of the abovemen‑
tioned study showed that electric vehicles can be more advantageous in an energy‑based
economy under certain circumstances [107]. Electric vehicles (EVs) and renewable energy
(RE) sources can dramatically reduce carbon emissions from the transportation and elec‑
tricity sectors. Additionally, another literature assessment of the power grid is offered,
integrating renewable energy sources and electric vehicles. With economic and environ‑
mental analysis, the presence of EVs can reduce grid effects, the ability of EVs to integrate
the RER, and excessive RE power generated on the grid. In the Vehicle‑to‑Grid (V2G) con‑
cept, the vehicle can be considered a load or a distribution energy source. Utilizing V2G
can improve efficiency, performance, dependability, and stability [108].
Hybrid energy storage systems (HESSs) are related to energy management (EM) meth‑
ods, configurations related to HESSs, and numerous tactics utilized for electric vehicles
(EVs). In addition, research was conducted on the performance evaluation of EM methods
for HESS setup. The HESS EM topologies have been evaluated for EV predicated on their
performance. The performance depended on the lowering of the EVs’ battery peak cur‑
rent, with the regenerative braking power comparison being considered. System design
and voltage variation were offered as a path for EV researchers to follow [109]. A two‑
stage model was designed for managing a microgrid with renewable sources and EVs,
aiming to minimize operation costs and emissions. The model uses an Improved Shuffled
Frog Leaping Algorithm (ISFLA) to optimize the objective function, focusing on managing
variations in wind turbine and photovoltaic (PV) management. Subsequently, simulation
results show the algorithm’s superiority over conventional approaches [110]. Moreover,
mixed‑integer linear programming (MILP) should be utilized to optimize the cost of energy
demand. The cost function was solved with real and altered data to explore the bidirec‑
tional PEV effects on the load of a flexible building, and the distribution system’s optimized
DERs were investigated. The purpose was to highlight the importance of a comprehen‑
sive approach for determining the most appropriate PEV strategies. Simulation findings
proved the method’s effectiveness by lowering expenses and voltage variations relative to
slower PEV activities.
EV scheduling requires robust optimization techniques, such as Vehicle‑to‑Grid (V2G)
and Grid‑to‑Vehicle (G2V) strategies, for the integration of electric vehicles (EVs) with
smart grids [78]. The study under discussion addressed clean energy resources and re‑
duced air pollution due to internal combustion engines. Similarly, some of the energy stor‑
age devices discussed were required for EVs. The use of plug‑in electric vehicles (PEVs) is
the most effective technique to minimize carbon emissions and is a prerequisite for devel‑
oping green transportation services. The advantages of PEVs are significant because they
can operate as an energy buffer by enhancing the energy network’s stability, affordability,
and dependability through storage.
Vehicle‑to‑Building (V2B) technology is a highly auspicious energy management sys‑
tem, which enables the optimized regulation of energy between vehicles and buildings.
The study under observations extensively discusses the uses and reviewed energy man‑
Processes 2024, 12, 270 21 of 42

agement techniques with respect to V2B integration. In this regard, recent battery storage
capacity findings delineate the result by explaining bidirectional power flow and more dis‑
charging cycles using V2B [111]. Due to the reported mismanagement by the government
of Pakistan, power plants are erected to combat a power shortfall; nevertheless, there is
now more generative capacity than is required, and plants are not operating, but incurring
fixed costs. The transportation of fossil fuels degraded the quality of the air. Since 2020,
three scenarios with 30%, 50%, and 70% EV sales have been thoroughly examined, and on
the account of the previous scenarios, it has been established that in 2024, with 70% EV
sales, EVs added up to 1250 MW, and with peak demand, they would be in a position to
surpass the generating level [112]. In order to amplify the feasibility regarding EV, the anal‑
ysis was proposed for using railway infrastructure for highway charging stations so elec‑
tric vehicles could go great distances. The growing economic, security, and environmental
concerns provide a strong impetus to transform the existing transportation system into an
advanced electrified system. Using the Sim Power system in MATLAB/Simulink to model
and simulate a *25kV supply to feed the railway, a feasible option utilizing the railway line
was shown. The results proved the scheme’s effectiveness in real‑world circumstances [79].
Electric vehicles, which utilize electric fuel cells and hybrid energy resources such as bat‑
teries and ultra‑capacitors, were discussed to satisfy the dynamic requirements of electric
motors and auxiliary systems. New technologies and DC/DC converters were suggested
for further research, along with the most recent fuel cell electric car advancements and con‑
cepts. An analysis of the advantages and disadvantages was conducted using rule‑based,
optimization‑based, and learning‑based approaches. Researchers could now work on the
software side to create control techniques utilizing artificial intelligence [113].
The electrification of automobiles necessitates fast‑charging facilities, resulting in an
electric power shortage in conventional networks. Electric vehicle (EV) fast‑charging re‑
search is provided to examine the problems of power design, energy storage, microgrid
control techniques, and energy management optimization. A hierarchical control system
for decoupled control in EV charging with the various microgrid system levels is also de‑
scribed. For the optimal performance of EV‑charging stations, several control mechanisms
and future research topics were discussed [114]. Electric vehicles are the primary solu‑
tion to the economic and environmental problems posed by internal combustion engines.
With the improvement in electric vehicle power drive and battery‑charging technologies,
Vehicle‑to‑Grid (V2G) topology is the primary rationale for EV integration in smart grids,
as it enables the integration of renewable energy systems into the power grid. The topolo‑
gies for charging EVs, the effects of EVs, and the smart grid with the V2G scheme are
discussed. The study identified some major issues in the EV sector and the direction of fu‑
ture research [115]. Microgrids are a solution to decentralize electrical grids and improve
distributed energy resource usage. However, all active players within a microgrid can be
computationally expensive. An optimal scheduler is essential for electric‑vehicle ‑charging
stations (EVCSs) to meet demands without wasting electricity and flatten peak load on the
main power grid. In [116], the authors introduced two novel microgrid models that com‑
bine energy generated by a DER, storage with an energy storage system (ESS), EVCS, and
electricity trading with the MPG. These models effectively shift load from the MPG while
maintaining customer satisfaction and throughput, despite costs incurred by the DER. Real
data are used to ensure robustness, and reinforcement learning is implemented to find the
optimal scheduler. The COVID‑19 pandemic has prompted the energy industry to priori‑
tize renewable energy sources, particularly microgrid systems, to address environmental
concerns and establish a sustainable future. A comprehensive assessment of microgrid
systems, focusing on optimal design, control systems, and energy management, is pro‑
vided by the authors in [117]. Key findings include the importance of effective design
and control strategies; the integration of renewable energy sources and energy storage sys‑
tems; advanced control techniques and optimization algorithms; and the application of
cutting‑edge trends like artificial intelligence, data analysis, and blockchain. A novel MG
sizing method is developed in [118] to incorporate metaheuristics into a particle swarm op‑
Processes 2024, 12, 270 22 of 42

timization algorithm. The authors considered optimal demand response capacity from EV‑
charging loads, ensuring reliable electrical load supply in areas far from the grid. An ad‑
vanced EV‑charging demand response program is also incorporated in the proposed strat‑
egy. Comprehensive statistics‑based performance evaluations indicated that new meta‑
heuristics have the potential to outperform the PSO by up to 6% in MG sizing applications.
It indicates the potentially significant implications of using advanced metaheuristics for
improving the economics and rollout of capital‑intensive grid‑isolated 100% renewable
MGs. It is anticipated that the exponential growth of electric vehicles (EVs) will make a
substantial impact on the transportation sector, given the diminishing efficiency of fossil
fuels and the emission of greenhouse gases. Developed and developing nations are concen‑
trating on intelligent charging solutions to satisfy the demand for EV charging. In order to
enhance the design and implementation of charging station infrastructure, researchers are
additionally analyzing the EV‑charging control, EV variants, global charging standards,
and AC‑DC and DC‑DC converter architectures. Furthermore, examining the impact of
electric vehicle (EV) collectors and EV penetration on the integration of renewable energy
sources into electric energy systems. Increasing demand is being placed on charging tech‑
nology and power converters that offer a versatile, dependable, and cost‑effective charging
environment. The researchers are investigating various facets and frameworks of electric
vehicle (EV) charging, encompassing charging current, charging duration, charging site,
alternating voltage power supply, charging power, battery capacity, industry standards,
and charging methods (onboard and offboard). For widespread EV charging, the use of
noise filters and semiconductor devices will substantially improve the ability to regulate
converter power, and new methods to enhance power quality and grid stability are re‑
quired [119].

5. Role of Artificial Intelligence in Smart Grid

AI technologies applied to smart grids provide a broader view of how to control and
improve smart grids, even if they provide security from hackers, with multiple pricing
methods like (ToU) or real‑time pricing improve efficiency [120]. Further use of artifi‑
cial intelligence (AI) in smart grids is necessary to build a criterion for better control and
monitoring. Due to the interconnection of networks like the internet, false data detection
is important because manipulation and physical change in data can lead one the wrong
way; that is why measuring the accuracy of the IEEE 14 bus system is used to judge differ‑
ent scenarios and to compare with previous historical data based on under‑concept drift
and without‑concept drift. A principal component analysis (PCA) test was carried out to
measure data accuracy. Furthermore, the effectiveness was checked using the KNN algo‑
rithm [121]. Demand response is widely discussed nowadays due to electricity distribu‑
tion. A scheduling strategy for demand response management provides benefits in terms
of cost, reliability, and functionality.
Multiple household scenarios were tested in MATLAB to obtain the confirmation of
solutions and particle swarm optimization (PSO) for load management. A cost saving of
39.1% was achieved through the proposed methodology. A plug‑in hybrid electric vehicle
(PHEV) capable of storing energy and the concept of selling excess energy back to the grid
can be incorporated into the system [122]. Figure 7 shows the various domains where AI
is used.
Optimal home energy management system (HEMS) scheduling is necessary to de‑
crease the load demand. For this purpose, a multi‑objective optimization‑based solution
is used to shift the electricity load from peak demand hours to non‑peak hours by defining
the load pattern. For real‑time rescheduling, the home appliance coordinated with each
other in this study. The scheduler will receive help with the optimal scheduling of the
ON/OFF timing of appliances, and it will avoid the waiting time of appliances. Various
optimization techniques, such as binary multi‑objective bird swarm optimization, a com‑
bination of birds’ swarm and cuckoo search algorithms, can be combined to achieve the
desired outcomes and reduce the cost of electricity bills [123]. Traditional model‑based al‑
 monitoring. Due to the interconnection of networks like the internet, false data detection
is important because manipulation and physical change in data can lead one the wrong
way; that is why measuring the accuracy of the IEEE 14 bus system is used to judge
different scenarios and to compare with previous historical data based on under-concept
Processes 2024, 12, 270 drift and without-concept drift. A principal component analysis (PCA) test was carried 23 of 42
out to measure data accuracy. Furthermore, the effectiveness was checked using the KNN
algorithm [121]. Demand response is widely discussed nowadays due to electricity
distribution. A scheduling strategy for demand response management provides benefits
gorithms must be more efficient to address the issues related to renewable energy resources
in terms of cost, reliability, and functionality.
like analysis, control, and scheduling. As such, artificial intelligence is used to deal with
Multiple household scenarios were tested in MATLAB to obtain the confirmation of
massive amounts of data and non‑linear problems. There are three different sections into
solutions and particle swarm optimization (PSO) for load management. A cost saving of
which the whole discussion is divided: (i) optimization control of the power and energy
39.1% was achieved through the proposed methodology. A plug-in hybrid electric vehicle
system by AI; (ii) fault detection, state estimation, and parameter identification of power
(PHEV) capable of storing energy and the concept of selling excess energy back to the grid
systems by AI; and (iii) forecasting of renewable energy system generation by AI [124].
can be incorporated into the system [122]. Figure 7 shows the various domains where AI
is used. types of AI techniques are represented in Figure 8.
Different

Processes 2024, 12, x FOR PEER REVIEW 24 of 44

Optimal home energy management system (HEMS) scheduling is necessary to

decrease the load demand. For this purpose, a multi-objective optimization-based solution
is used to shift the electricity load from peak demand hours to non-peak hours by defining
the load pattern. For real-time rescheduling, the home appliance coordinated with each
other in this study. The scheduler will receive help with the optimal scheduling of the
ON/OFF timing of appliances, and it will avoid the waiting time of appliances. Various
optimization techniques, such as binary multi-objective bird swarm optimization, a
combination of birds’ swarm and cuckoo search algorithms, can be combined to achieve
the desired outcomes and reduce the cost of electricity bills [123]. Traditional model-based
algorithms must be more efficient to address the issues related to renewable energy
resources like analysis, control, and scheduling. As such, artificial intelligence is used to
deal with massive amounts of data and non-linear problems. There are three different
sections into which the whole discussion is divided: (i) optimization control of the power
and energy system by AI; (ii) fault detection, state estimation, and parameter identification
of power
Figure systems by
7. Application AI; andof(iii)
Domains forecasting
Artificial of renewable energy system generation by
Intelligence.
Figure 7. Application
AI [124]. Domains
Different types of techniques
of AI Artificial Intelligence.
are represented in Figure 8.

Figure 8. Types of AI techniques.

Figure 8. Types of AI techniques.
Another AI-based framework has been developed for uncertainty forecasting and
management in smart grids with information analysis functions, data processing, and
uncertainty management. Specifically, uncertainties from electric load, solar, and electric
vehicles (EV) were modeled. Using improvised-quintile regression neural network
(IRNN) probabilistic load forecasting and for handling the missing data, a novel
Processes 2024, 12, 270 24 of 42

Another AI‑based framework has been developed for uncertainty forecasting and
management in smart grids with information analysis functions, data processing, and un‑
certainty management. Specifically, uncertainties from electric load, solar, and electric ve‑
hicles (EV) were modeled. Using improvised‑quintile regression neural network (IRNN)
probabilistic load forecasting and for handling the missing data, a novel multivariate solar
data imputation method was proposed. It outperforms the imputation methods with up to
28% lower mean‑squared errors. An uncertain EV‑charging management system was dis‑
tributed, and a multi‑agent method was used for uncertainty management in smart grids to
achieve 92% less computational time. By this proposed strategy, uncertain smart grid con‑
trol was achieved by using uncertainty qualification and adequate control strategies [125].
Smart grids rely heavily on artificial intelligence (AI) solutions due to the data‑handling
limitations of conventional modeling and control approaches. A review of artificial intel‑
ligence techniques for load forecasting, power grid stability evaluation, problem identi‑
fication, and smart grid security challenges has been carried out. Furthermore, the chal‑
lenges of integrating AI approaches to completely materialize smart grid systems and the
prospects for AI applications in smart grids were also examined. The study concluded that
smart grid system dependability and resiliency could be improved by employing AI ap‑
proaches [126]. Grid decentralization is a crucial solution to meet global energy demand
by incorporating renewables at the distributed level. Microgrids are driving this decen‑
tralization, and an intelligent and reliable energy management system (EMS) is essential
for optimal resource utilization. Artificial intelligence (AI) can provide resilient, efficient,
reliable, and scalable solutions. In this context, the existing conventional and AI‑based
techniques for energy management systems in microgrids include analyzing methods for
centralized, decentralized, and distributed microgrids. Machine learning techniques, like
ANNs, federated learning, LSTMs, recurrent neural networks (RNNs), and reinforcement
learning, are summarized for EMS objectives like economic dispatch, optimal power flow,
and scheduling. AI can enhance performance efficiency and reliability in managing energy
resources, but challenges like data privacy, security, and scalability need to be addressed.
Future research directions should explore AI‑based EMSs’ potential in real‑world appli‑
cations [127]. The integration of energy management systems (EMSs) in microgrids is de‑
veloped in [128] to optimize energy scheduling, control, and operation. The proposed
architecture used the proximal policy optimization (PPO) algorithm for learning stabil‑
ity and complexity. A novel performance metric, namely the burden of load and gener‑
ation (BoLG), is proposed by the authors to evaluate energy management performance.
The BoLG is incorporated into reward settings for optimizing multi‑action controls like
load shifting, energy charging–discharging, and transactions. As a result, the proposed
architecture could improve energy management performance with a proper trade‑off be‑
tween stability and profitability, compared to dynamic programming and double deep
Q‑network‑based operation. The implementation of renewable energy sources (RESs) in
remote and rural regions is becoming increasingly prevalent due to its sustainability and
dependability. The intermittent nature of hybrid RESs, nevertheless, poses obstacles. A
variety of systems, schemes, requirements, microgrid communication challenges, and the
application of artificial intelligence are examined by the authors in [129], and it was found
that they pertain to the integration of RESs. In addition, potential obstacles and control
strategies, optimization methods, and approaches to enhance the performance of the elec‑
trical grid are addressed with the help of the efficacy of artificial intelligence in integrating
RESs. Rechargeable batteries are crucial for energy storage, but traditional methods often
face time and resource constraints. Artificial intelligence (AI), particularly machine learn‑
ing (ML), has rapidly grown in recent years, enabling the classification and regression of
various battery research fields. The authors provided a comprehensive review in [130] of
the various fields in which AI has been utilized in rechargeable battery research, including
the concept of ML, prediction of battery states and parameters, discovery of key materials
for rechargeable batteries, and their use in energy storage charging protocols. The review
Processes 2024, 12, 270 25 of 42

also highlighted the potential for developing AI’s new elements, machine vision, and dig‑
ital twins in battery research.
Problems, trends, and cybersecurity issues in smart grid (SG) critical infrastructure
for big data and artificial intelligence were described, and some combined known and un‑
knowns were proposed. The SG architecture and functionalities are described along with
the electrical network’s reliability, safety, and efficiency. Furthermore, security counter‑
measures are exposed, and the cybersecurity assessment method for supervisory control
and data acquisition of smart grids is presented [131]. Electric vehicle (EV) adoption, along
with the smart grid, has many benefits, like reducing CO2 emissions, and it also poses
some problems that need to be addressed. The concern is to design an algorithm for the
cost reduction in EV‑charging batteries and to avoid users from being stranded. Artificial
intelligence is used to render EVs and systems to avoid the collectives of smarter EVs, and
the comparison of different techniques was also presented [132].
Artificial intelligence techniques have mostly been developed in recent decades, and
it has applications in power electronics, power engineering, and industrial systems. AI
application in smart grid (SG) and renewable energy systems (RESs) is presented [133].
The research explores how AI is used in areas such as health monitoring, wind generation,
smart grid system control, and simulating operating conditions. It specifically focuses on
optimizing automated generation control (AGC) in multi‑area and multi‑machine power
systems using various AI models, including those for solar irradiance prediction, PV power
generation, and power system frequencies. The study proposes a distributed and parallel
security‑constrained optimal power flow (SCOPF) algorithm for large power networks and
evaluates it on an experimental platform consisting of a real‑time simulator, weather sta‑
tion, and phasor measuring devices and suggests that these approaches could be applied
to other technological domains [134]. In [135], the authors developed an evolutionary re‑
inforcement learning method to address the problem of energy resource management in
microgrids and to enhance the share of renewable energy resources in the power grid. The
proposed approach employed reinforcement learning and neuro‑evolution techniques to
find the optimal policy. Therefore, it is more efficient in high‑dimensional and continuous
action spaces.

5.1. Role of Machine Learning in Smart Grids

An optimal way can be achieved using machine learning techniques to run the grid
with analysis and proper decision making. Connectivity and communication are the core
parts of any smart grid because massive data are required for decision making. The big
data we obtained from the microgrid needs unique analysis techniques to extract the data
and handling of the data [136]. The smart grid has transformed the electricity industry
with communication technology and sensors, enabling improved generation, monitoring,
distribution, and control. To enhance demand‑side management (DSM) on the Internet of
Things (IoT)‑enabled grid, machine learning can be applied. The success of DSM depends
on priorities, and a robust model has been developed to control smart grid incursions.
Simulation results show that the proposed technique is less effective for incursion but more
effective for reducing smart grid power consumption [137]. Figure 8 shows the branches
of AI linked with machine learning that is applied in the MG‑based EMS.
Demand response (DR) has proven to be highly effective in enhancing the flexibility
and dependability of the energy system, and it is increasingly utilized in smart grid energy
systems. Artificial intelligence (AI) and machine learning are used to accomplish difficult
tasks in DR machine learning (ML). AI addresses all issues associated with the DR, such
as the optimal selection of consumers, dynamic pricing, scheduling, device control, and
the means to motivate customers fairly and economically. Based on 160 articles, 40 com‑
panies, and 21 large‑scale initiatives, a summary of the AI technique for DR applications
is provided. It outlines the benefits and limits of each technique and provides recommen‑
dations for future research [50]. Figure 9 shows the branches of AI linked with machine
learning, which is applied in the microgrid‑based EMS
Processes
Processes 2024,
2024, 12,
12, 270
x FOR PEER REVIEW 26 of
27 of 42
44

Figure 9.
Figure 9. Branches
Branches of
of AI
AI techniques.
techniques.

The ideal
idealpower
powerflowflowto to meet
meet the the growing
growing energy energy
demanddemand
in the in the intelligent
intelligent micro‑
microgrid
grid is provided.
is provided. Introducing
Introducing a blockchain-based
a blockchain‑based predictive
predictive energy
energy trading
trading platform
platform en‑
enables
ables real-time
real‑time energy
energy consumption
consumption monitoring
monitoring andand thethe management
management andand production
production of
of scattered
scattered energy
energy generation
generation resources.
resources. Predictive
Predictive analysis
analysis basedbased on historical
on historical energy
energy use
data was also
use data wasperformed to maketobetter
also performed makeselections. To statistically
better selections. analyze theanalyze
To statistically predictive
the
model’s
predictivesuccess,
model’s machine
success,learning
machinemodels
learningalso evaluate
models alsoblockchain platforms platforms
evaluate blockchain based on
consumer–supplier service quality
based on consumer–supplier andquality
service resourceandutilization
resource [138]. A technique
utilization [138]. Afor evaluat‑
technique
ing cooling load
for evaluating (CL) and
cooling loadheating
(CL) andload (HL) in
heating buildings
load (HL) in using multiple
buildings usingforecast
multiple models is
forecast
described.
models is The technique
described. Theuses a hybriduses
technique machine learning
a hybrid approach
machine that combines
learning approachgroupthat
methods
combinesof data methods
group handlingof(GMDH) and Support
data handling (GMDH)Vector Regression
and Support Vector (SVR) models(SVR)
Regression with
Back‑Propagation Neural Networks
models with Back-Propagation Neural(BPNNs),
Networks Elastic Net Regression
(BPNNs), Elastic Net (ENR), Partial(ENR),
Regression Least‑
Squares Regression (PLSR),
Partial Least-Squares K‑Nearest
Regression Neighbors
(PLSR), K-Nearest(KNN), and general
Neighbors (KNN),regression neural
and general
networks
regression neural networks (GRNNs). The results show a high correlation coefficient CL
(GRNNs). The results show a high correlation coefficient (R) of 99.92% for (R)
forecasting
of 99.92% for andCL99.99% for HLand
forecasting forecasting
99.99% for with
HLminimal
forecastingstatistical error [139].
with minimal Implement‑
statistical error
ing prediction
[139]. and optimization
Implementing prediction models based on machine
and optimization models learning
based onyieldedmachine impressive
learning
results.
yielded The algorithm’s
impressive implementation
results. The algorithm’sof this concept consists
implementation of of four
this steps. consists
concept The initial
of
and second stages work on the day’s pricing before the market, which
four steps. The initial and second stages work on the day’s pricing before the market, is completed by the
higher
which is performance
completed of byneural network
the higher design. The
performance support‑vector‑based
of neural network design.architecture
The support- of
the consumer is also offered for orders of 1 MWh. In the final stage, reinforcement
vector-based architecture of the consumer is also offered for orders of 1 MWh. In the final learning
stage, reinforcement learning architecture based on Q learning is implemented to
Processes 2024, 12, 270 27 of 42

architecture based on Q learning is implemented to optimize the economics of electricity

transactions. In the third stage, SAM NREL simulates commercial‑scale PV connected to a
microgrid with a capacity of 600 kW; in the final stage, reinforcement learning architecture
based on Q learning is implemented to optimize the economics of electricity transactions.
The total Python code is provided as a framework that fosters the renewable portfolio by
reducing its reliance on supportive federal and state laws [140]. There is a possibility of
false data incursion on the large data sources in the smart grid (SG), posing a significant
threat and having serious consequences for the system. Various machine learning (ML)
methodologies were developed, and their progress was assessed. The architecture of SG is
examined in light of fake data assaults defined based on security requirements. ML tech‑
niques are then characterized based on detection situations, such as technical loss, load
forecasting, and state estimation. The study suggests future research directions to address
the limitations of the current machine‑learning‑based approach [141].

5.2. Cybersecurity Threats and Their Remedial Measures in Smart Grid

Power grid monitoring and control rely on communication networks. Still, the scourge
of false data injection (FDI), which insidiously creeps into the network systems at times,
can undermine the seamless working of power grids. Nonetheless, networks can control it
by pre‑empting the origination of errors through state estimation with SE variables relative
to the actual values. The test system of IEEE 14‑bus is primarily utilized to anatomize dif‑
ferent scenarios in power grids [142]. The most forbidding impediment in establishing an
innovative smart grid is to formulate its robust and unbreachable security mechanism, as
cybercriminals, hackers, and terrorists usually exploit the vulnerability of open networks.
The cardinal notions behind directing this analysis are to examine and adopt tried‑and‑
tested methodologies for successfully averting cyber‑attacks and uproot them to gain utter
control over networks. The aforementioned notion of purging smart grids of the recurring
cyber‑attacks can only be materialized by smartening up the security mechanisms [143].
Figure 10 shows the vital role of cybersecurity in a smart grid.
Smart metering inventory (SMI) or advanced metering infrastructure (AMI) provides
a secure connection between users and suppliers through two‑way communication. It
sharply monitors data at the consumer end, e.g., time of use (ToU), real‑time pricing (RTP),
critical peak pricing (CPP), and transmits feedback to database management systems (DBMs)
through SMS or signal. This paper extensively sheds light on the hazards that originate
from lax cybersecurity surveillance, often leading to dire ramifications. Nonetheless, the
paper also analyzes the remedial measures to forestall such threats [144]. The prime motive
of this paper is to provide a well‑conceived protective mechanism and to build an impreg‑
nable safety wall against all types of hackers and attackers. Cybersecurity is a confronting
issue today because the smart grid’s considerable data are shared through communica‑
tion networks and can be secretly accessed by hackers. Smart grids should be capable of
identifying and classifying threats and protecting the confidentiality, integrity, and avail‑
ability of information resources against hackers to uproot the menace concerning cyber‑
attacks [145].
Processes 2024, 12, x FOR PEER REVIEW 29 of 44
Processes 2024, 12, 270 28 of 42

Figure 10. Role of cybersecurity in smart grid.

Figure 10. Role of cybersecurity in smart grid.

Smart metering
6. Greenhouse inventoryReduction
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powers into distribution networks are indispensable. The fundamental
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on numerous buses of radial distribution networks to find ways to reduce energy loss. The
shared through communication networks and can be secretly accessed by hackers. Smart
developed modus operandi was applied on the bus network (IEEE69 and 39 Buses), and
grids should be capable of identifying and classifying threats and protecting the
subsequently, definitive results were generated [146]. The proposed model in another re‑
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of pollution The microgrid
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raises a red effective resourceand
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is seemingly dragging scientific society toward the brink of an utter fiasco.Micro‑
for introducing distributed energy resources (DERs) into the existing grid supply. Carbon
grids withare
emissions DERs, electrical vehicles
an inevitable (EVs),ofand
concomitant the electrical storage systems
fossil-fuel-based (ESSs) are com‑
energy generation system.
So, integrating renewable energy resources is an optimal solution to resolve this issue
effectively. In order to significantly subside the proliferation of carbon emissions, the
optimal allocation of renewable energy resources and their capability to inject active and
Processes 2024, 12, 270 29 of 42

pared with the conventional power network and, subsequently, are analyzed to ascertain
the results. The mechanism of a microgrid is elaboratively delineated with this control
strategy. Some issues concerning power quality (PQ) and energy management strategies
by the DER‑based microgrid are also addressed. The simulation was performed to gauge
the effectiveness of solar, wind, ESS, and EVs on microgrid frequency response. Addition‑
ally, the reliability of the microgrid was also estimated with the help of connected DER
systems, ESSs, and EVs [148].
There is an unprecedented increment in the popularity and usage of renewable energy
sources (RESs) in microgrids owing to their power generation capacity and environmen‑
tally friendly power generation capability. Unfortunately, the reliability and security of
the system are compromised due to the integration of RESs. There is a requirement for an
optimized control strategy to ensure efficient and secure power transfer. The discussion
of optimized control strategies for the microgrids consisting of RESs based on structure,
characteristics, operation, function, and pros and cons was emphasized. A rigorous re‑
view concluded that the optimized control schemes could increase the efficiency of the
operation of RESs into microgrids. Some of the strategies are constricted to simulation
only, so there is a genuine need to undertake extensive research in this field [149]. Global
energy awareness was instrumental in shifting the focus towards the smart grid with solar
systems and battery storage. Demand‑side management (DSM) plays an essential role in
smart grid operation, so in this study, a combination of Glow‑Worm Swarm Optimization
(GSO) and Support Vector Machine (SVM) is proposed to subside the electricity tariff. GSO
is utilized to discover the optimum solution for power scheduling to reduce the cost sig‑
nificantly and to find the optimized range of battery storage energy. SVM uses that data
set to find the in/out power from the battery for price minimization. The electricity tariff
owing to this strategy plummeted by 11.2% as the reduction transpired from 2.3 to 2.27 at
a load of 8.2 kWh/day, and consequently, it resulted in a shift in policies toward demand‑
side actions for system stability [20]. Furthermore, the mixed‑integer linear programming
method was used to transform a bi‑objective optimization into a single‑objective approach.
The model was tested on a microgrid comprising 1000 smart homes with various DSM lev‑
els. Simulation results indicated that this model was cost‑effective and an optimal way to
plan and operate the system while considering economic and environmental factors [150].
Economic, environmental, and cost‑effective energy supply and storage systems pro‑
vided in the ship are proposed using a fuzzy self‑adaptive meta‑heuristic algorithm. Opti‑
mal solutions and better convergence characteristics were used using traditional methods
like fuzzy‑based particle swarm optimization (FPSO) algorithms. The fundamental pur‑
pose was to provide an integrated electric propulsion system, energy storage system, and
shore power supply facility to ships [151].

7. Uncertainty Handling in Microgrid System

The high cost of energy and greenhouse gas emissions are ongoing challenges that re‑
newable energy sources can help. In [152], a stochastic framework is proposed to optimize
microgrid scheduling and prevent load shedding due to unpredictability while maximiz‑
ing profit. The stochastic multi‑objective model is also suggested to reduce planning costs
and increase resilience during natural disasters [153,154].
The reliance of solar cells on irradiance level and partial shade condition (PSC) neces‑
sitates the utilization of the maximum power point tracking (MPPT), which delivers the
maximum power point under PSC. A method for determining the MPP under uniform
irradiance conditions (UICs) and PSC was investigated using the mathematical formulas
of PV system behavior. In terms of tracking speed, low sampling time, and stable steady‑
state conditions, simulation and experiments improved the performance of the proposed
method [155,156]. To optimize energy market profit, it is proposed to schedule Hybrid
Thermal–Energy Storage (HTES) generation. In HTES, the energy storage system (ESS) is
physically linked to the thermal units in order for ESS charging to be possible. Similarly,
mixed‑integer programming is used to formulate the proposed resilient optimization archi‑
Processes 2024, 12, 270 30 of 42

tecture, which can account for market unpredictability (MIP). The problem was resolved
using the GAMS (General Algebraic Modelling System) program [82].
Recent research completed with the software HOMER pro discusses the numerous so‑
lutions for meeting the mine’s Western Australian electricity needs. A risk‑constrained op‑
timization technique is developed using Monte‑Carlo uncertainty models to provide opti‑
mal scheduling, cost, and conditional value at risk (CVaR) [24]. A risk‑constrained optimiza‑
tion technique using Monte‑Carlo uncertainty models is developed for optimal scheduling
and cost analysis of Western Australian mine’s electricity needs. A risk‑constrained stochastic
algorithm for resilient microgrid operation using demand‑side management is also bene‑
ficial [157,158]. While a multi‑objective bidding method for wind–thermal–photovoltaic
systems in the deregulated power market to reduce costs and emissions. These studies
demonstrate the importance of utilizing renewable energy sources and optimizing energy
systems for economic and environmental benefits [159,160].
Hybrid power producers (HPPs) consist of concentrated solar power plants (CSPPs),
wind turbines, demand response systems (DRSs), and compressed air energy storage (CAES)
units. The research studies focus on optimizing the performance of the HPP and minimiz‑
ing risk through the use of various techniques. Another technique introduces a distinct
model for achieving optimal behavior of CSPP‑based hybrid power producers (HPP) in
day‑ahead (DA) and intraday markets using a three‑stage architecture. To compare differ‑
ent techniques for the same challenges, by applying conditional value at risk (CVaR) based
on the GBP constraint technique, the utilization of CSPP‑based HPP reduces the associated
risk making it advantageous [161,162]. In a separate piece of research, a hybrid power pro‑
duction system consisting of a concentrated solar system, a storage system, a wind turbine,
and a demand response provider was designed to operate in energy markets. The study
developed a mixed stochastic–interval model using stochastic and interval parameters to
address the uncertainties of demand response and solar energy. The proposed model was
optimized with boundary intersection and lexicographic optimization and demonstrated
that the model satisfies all its requirements [163,164]. A risk‑averse stochastic bi‑level pro‑
gramming method for a retailer’s competitive market decision making. The method uti‑
lized electric vehicles and sensitive loads to monitor real‑time prices and identify the most
cost‑effective vendors. The non‑linear stochastic model was converted into an equivalent
linear single‑level program using Karush–Kuhn–Tucker optimality constraints and dual‑
ity theory. The study demonstrated the applicability of the proposed model in real‑world
settings [165].
The autonomous operation of hybrid microgrids (HMGs) utilizing the unified inter‑
phase power controller (UIPC) to integrate AC and DC subsystems, which maintains bidi‑
rectional power flow using Model Reference Adaptive Control (MRAC). A new structural
scheme for the UIPC’s power converter and a harmonic‑based modeling technique are
introduced, and simulation results corroborate the acceptable islanding performance of
HMG’s proposed design [166]. A hierarchical stochastic management system is also pro‑
posed to manage interconnected grids, with a central entity responsible for connectivity
and power reference values exchanged with microgrids for both the main and within the
grid. Predictive control is derived from chance‑constrained models for the local operation
management of microgrids, taking into account system component unpredictability [167].
A discussion of the optimal scheduling approach for reconfigurable microgrids, taking
into account the islanded capacity constraint and the probability of islanding operation
(PIO) indicator, which assesses the likelihood of islanding. To address the non‑linearity of
the PIO issue and the error in the generation forecast, the 13‑interval approximation tech‑
nique is used. To validate the findings, a 10‑bus radial reconfigurable microgrid that in‑
cludes PV systems, wind turbines, batteries, and microturbines with varying levels of PIO
is used as a test system [168]. An effective optimization framework is also discussed based
on opportunity‑constrained constraints for the optimal management system consisting of
electrical load, heating load, cooling demand, and renewable energy generation. Energy
hub (EH) operators use the proposed scheme for optimal decision making. Despite the
Processes 2024, 12, 270 31 of 42

unpredictability of renewable power supply and hourly demand, a strong opportunity‑

constrained model simulating real time is implemented. Some operators are accountable
for the optimal operation of the hub’s assets using day‑ahead scheduling. A numerical sta‑
bility test is conducted on the step time size to validate the time resolution independence
of the solution [169].

8. Optimization Techniques Used for Energy Management System

For effective scheduling of distributed energy resources (DERs) in the system, a trans‑
active energy (TE) strategy may be considered. The microgrid participates in energy ex‑
change not only to meet the demand of the primary grid, but also to create a profit. Dy‑
namic balancing and energy supply management facilitated by TE can also produce the
similar results. Due consideration was given to commercial five‑grid participation in the
day‑ahead market using an IEEE 10‑bus test system to validate applicability and perfor‑
mance. The collected results demonstrated that by scheduling DERs using the proposed
method, we could receive the greatest possible profit [170]. Controlled microgrids can
reduce the complexity of distribution networks, which are growing increasingly intricate
to meet energy demands and consumer satisfaction. A facility for testing hybrid micro‑
grids was shown, demonstrating the high‑efficiency distribution architecture that incor‑
porated AC/DC communications. In addition, evaluations of control, architecture, and
performance, as well as hardware and software, are conducted using various converters
and a static synchronous compensator (STATCOM) to assess performance [171]. The ex‑
pansion of energy resources and their addition to traditional distribution is becoming more
complex. In the power part, the writers described the resistance to introducing microgrids
and how adopting microgrids would reduce energy loss. The software used for micro‑
grid homework is capable of performing three primary functions. Simulation, sensitive
analysis, and optimization can be utilized to achieve optimal operation [172]. The energy
industry will be profoundly affected by big data technologies. Through the application of
cross‑domain data, a big data platform facilitates the production, development, monitor‑
ing, and exploitation of smart energy resources. A web‑based decision support system for
multi‑source data to assist in the design of energy management plans was developed. The
implementation of DSS results in a considerable decrease in energy consumption, a reduc‑
tion in CO2 emissions, and a 10% increase in energy production from renewable energy
sources. The conclusion is that the outcome is always determined by the present condition
and future goals [173]. Given the current state of the environment and economy, utilizing
hybrid energy sources is essential. Domestic consumption of heat and electricity is grow‑
ing. Real‑coded genetic algorithms are utilized to attain optimal operational costs in smart
homes. Consideration was given to the thermal and electrical loop that includes a boiler,
a battery energy storage system, and an electric vehicle in addition to a conventional load.
Numerous tests and observations revealed that a micro combined heat and power system’s
electric load plays a significant impact in lowering total energy costs [13].
The authors compared various EV‑charging methods. Two‑way power flow enables
users to sell excess energy back to the grid. During the study, it was determined that
flexible billing mechanisms were advantageous for both customers and utilities and had a
substantial positive effect on the economy [174]. Renewable energy resources (RERs) and
energy storage systems (ESSs) are extremely beneficial for nations with a severe shortage of
electrical energy. The study offers methods for Home‑to‑Grid energy management (H2G).
It provides the following:
• Methods for improving energy performance.
• Lower energy costs.
• Reduced uncertainty through the integration of PV and ESS while considering user
preferences.
The GA algorithm was applied to optimize its scheduling and energy management,
yielding considerable results [14]. Table 5 shows the optimization methods used in the
smart grid system.
Processes 2024, 12, 270 32 of 42

Table 5. Optimization methods used in literature.

Techniques Optimization Methods Functions and Key Objectives

MILP is used for optimization, and it is easily operatable on
MILP [11,110] CPLEX Solver, which is used in unmanned aerial vehicles
(UAVs) to simulate their movement ways.
Deterministic Dynamic Programming Algorithms It is used to solve optimization issues, robot control,
Techniques (DP) [175] navigation systems, and dependability design.
Mixed‑integer non‑linear programming (MINLP) is a strategy
MINLP [11,71] to solve the optimization problems involving continuous,
discrete, and complex variables.
Particle swarm optimization PSO is an algorithm to address optimization issues like power
(PSO) [16,18,28,29,68,151,176] management and it can be utilized for graphical effects.
The genetic algorithms are used to find a comprehensive
Genetic algorithms architectural solution and are also used for image processing,
Metaheuristics (GA) [12–14,19,55,175] learning of robot behavior, and distributed applications for
Techniques data collection.
Artificial Fish Swarms have frequently handled issues, image
processing, data clustering, robotics, wireless sensor networks,
Artificial Fish Swarm [68] power systems, financial forecasting, and medical diagnosis, as
well as great precision. There are some other applications like
neural network studies, color leveling, data segmentation, etc.
There are a lot of applications of deep neural networks like
Artificial Neural
handwriting recognition, picture compression, and stock
Network [50,105,125,139]
Artificial Intelligence exchange prediction.
Techniques This is very useful in spaceflight of the automobile industry,
Fuzzy Logic [147,151] enhancement of transmission system’s performance, and
traffic control.
This is a natural‑phenomenon‑inspired optimization algorithm
Elephant Herding Optimization [22]
that depends on the herding behavior of elephants.
Special
Techniques This is a principle that is utilized in optimal control theory to
Pontryagin’s Minimum
find the optimal control over a system by having the
Principle [23]
constraints on states and input in mind.

9. Future Scope and Challenges

The integration of energy storage systems, electric vehicles, and artificial intelligence
can offer promising opportunities for microgrid energy management. These include multi‑
objective optimization, efficient V2G integration, predictive EV load forecasting, grid‑aware
EV routing, and EV‑integrated microgrid management. Advanced energy storage systems,
distributed management, AI‑driven control, and hybrid design are some of the microgrid
applications for these advanced technologies. The future of AI‑powered microgrid man‑
agement and control includes deep reinforcement learning for optimal decision making,
machine learning for anomaly detection and fault diagnosis, federated learning for dis‑
tributed microgrid intelligence, explainable AI for microgrid transparency, and AI‑based
predictive control. Microgrids require strong cybersecurity frameworks, secure data col‑
lecting, storage, and access control, as well as blockchain‑based security solutions, to pro‑
vide cybersecurity and data privacy. Additionally, standardization and interoperability
are crucial for open‑source platforms and standardized data formats encouraging research
and development.
Similarly, in future prospective buildings, energy management systems can be con‑
nected with grid‑interactive buildings to provide coordinated control of loads and renew‑
able energy sources. Community dynamics and user behavior modelling are examples of
human‑centric techniques. Microgrid technologies’ lifecycle assessments analyze their ef‑
fects on the environment and point out areas where sustainability can be improved. Adap‑
Processes 2024, 12, 270 33 of 42

tive control techniques, interoperability standards, resilience measurements, and policy

frameworks for microgrid integration are some examples of regulatory and policy con‑
siderations. Through these initiatives, sustainable energy management techniques will be
promoted, and the overall stability and security of the energy infrastructure will be improved.
Interoperability, cybersecurity risks, regulatory barriers, funding and cost issues, lim‑
ited scalability, standardization issues, policy uncertainty, grid connection issues, com‑
munity engagement, technology obsolescence, environmental impact assessments, grid
resilience requirements, complex permitting processes, low awareness and education, en‑
ergy market integration, ageing infrastructure, land use and zoning, reliability and mainte‑
nance, public perception, and limitations to energy storage are just a few of the challenges
that microgrids must overcome to be integrated. While cybersecurity threats involve cyber‑
security vulnerabilities, interoperability issues involve the smooth integration of various
microgrid components and technologies. The specific qualities of microgrids may not be
sufficiently addressed by regulatory restrictions, impeding their widespread implementa‑
tion. Regions with limited financial resources face issues due to costs and budget limits.
Energy storage solutions, such as batteries, can be expensive to install and maintain, with
limited capacity. Efficiency charging patterns in microgrids can be unpredictable, and in‑
tegration with microgrid management system requires sophisticated algorithms and data
analysis. The widespread adoption of EVs in microgrids is hindered by the high initial
infrastructure costs and enhances the need for clever pricing strategies. AI algorithms
require accurate and high‑quality data for accurate predictions and optimal energy man‑
agement decisions.

10. Conclusions
The researchers have managed to track down numerous technological anomalies in
the microgrid system that impede its seamless functionality and plunge its efficiency. The
energy management system, especially DSM, is optimized using demand response strate‑
gies. Hybrid DR schemes should be comprehensively perused in the literature to present
a tangible solution for the existing technological issues. One major obstacle hindering
the smooth operation of the smart grid is uncertainty encompassing renewable energy
resources. In the modern era, AI techniques are extremely beneficial in rendering smooth
technological operations and diminishing uncertainty regarding renewables and energy
demands. Different optimization techniques, such as metaheuristic techniques, are incor‑
porated in the literature that offer dynamic solutions. The techniques based on machine
learning are more resourceful and robust for many applications. So, ML‑based techniques
are highly recommended for future work. In the energy management system, the energy
storage mechanisms are integrated into the system for numerous purposes. Batteries are
preferred as a primary storage source compared to mechanical energy storage. The sys‑
tem with cybersecurity is indispensable to assure the safe and hazard‑proof operation of
the power system.
Recently, microgrids are becoming increasingly popular in addressing the widely
prevalent issues concerning the production and distribution of electrical power. In this
paper, comparative analysis has been conducted to investigate the various optimal ap‑
proaches for the efficient functionality of microgrids in tandem with figuring out how to
optimize demand‑side load management.
The results of the comprehensive analysis point out numerous areas for improvement
in the existing microgrid systems that bring about inefficient energy management due to
the recurrent utilization of outdated techniques. Furthermore, the paper examines the po‑
tential of DR and DMS techniques and observes the role of utility‑side management (USM),
generation‑side management (GSM), and demand‑side management (DSM) to smarten up
the overall energy management (EM) system.
The study reveals that DR management can be further divided into two distinctive
responses; the first is incentive‑based demand response (IBDR) and the other is the price‑
based demand response (PBDR) that further integrates factors like energy demand reduc‑
Processes 2024, 12, 270 34 of 42

tion, load side control, and time of use, which ultimately provide an understanding of
the demand response management strategies. The review paper further signifies using an
energy storage system (ESS) to optimize the consumption of electrical power and, subse‑
quently, presents a solution of using the combination of EESs and RESs for considerable
cost reduction and to handle fluctuation in the system effectively. The paper also incorpo‑
rates the growing importance of electric vehicles (EVs), which would help subside carbon
emissions and, as a result, would reduce the greenhouse effect. Hybrid electric vehicles
are the most advanced versions of electric vehicles available today and are deemed to be
the most integral part of the intelligent transportation system (ITS).
Moreover, the study emphasizes that technologically amplifying AI‑based equipment
bodes well for secured and reliable electrical power transmission. The AI systems under
discussion include machine learning, natural language processing (NLP), robotics, and
machine vision. They act as vital components to effectively handle the uncertainties in
load management and process the data in microgrid management. The insidiously spread‑
ing threat of cyber‑attacks is also discussed in this paper, which needs to be pre‑empted
through optimized AI‑based security modules. The methods discussed in the paper signif‑
icantly reduce the possibility of false data injection (FDI) in the communication systems of
the microgrids. It can also be observed that the values of real‑time pricing, time of use, and
critical peak pricing can be falsified through illegitimate intervention, and consequently,
could cause major problems for both the suppliers and the users.

Author Contributions: Conceptualization, M.R.K. and Z.M.H.; methodology, M.S.B.; software, F.H.M.;
validation, M.S.B., M.R.K. and Z.M.H.; formal analysis, F.H.M.; investigation, Z.M.H.; resources,
M.S.B.; data curation, Z.M.H.; writing—original draft preparation, M.R.K.; writing—review and
editing, K.S.S.A.; visualization, F.M.A.; supervision, K.S.S.A.; project administration, K.S.S.A.; fund‑
ing acquisition, F.M.A. and K.S.S.A. All authors have read and agreed to the published version of
the manuscript.
Funding: This work was supported by the Department of Education of Guangxi Autonomous Region
under grant number 2023KY0826.
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: The corresponding author can provide access to the data on request,
which was analyzed for this research.
Acknowledgments: The authors are highly grateful to their affiliated universities, institutes and the
Office of Research Innovation and Commercialization (ORIC), The Islamia University of Bahawalpur,
Pakistan (Project No. 3900/ORIC/IUB/2021), for providing the state‑of‑the‑art platform required for
research facilities.
Conflicts of Interest: The authors declare no conflicts of interest.

Abbreviations
The following abbreviations are used in this manuscript:
EV Electric Vehicle
ESS Energy Storage System
AI Artificial Intelligence
V2G Vehicle to Grid
AMI Advanced Metering Infrastructure
ANN Artificial neural network
PSO Particle swarm optimization
WDO Wind Driven Optimization
LSTM Long Short‑Term Memory
SVM Support Vector Machine
Processes 2024, 12, 270 35 of 42

KNN K‑Nearest Neighbor

GP Gaussian Process
PCA Principal Component Analysis
GMM Gaussian Mixture Model
MTGS Micro Gas Turbine Generation System
ICT Information and Communication Technology
DRP Demand Response Program
BESS Battery Energy Storage System
CHP Combined Heat and Power
DR Demand Response
HOMER Hybrid Optimization of Multiple Electric Renewables
MIP Mixed‑Integer programming

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