A Rule-Based Energy Management System for Smart Grid-Integrated Microgrid with Time-of-Use Demand Response under Indian Grid Conditions

The accelerating deployment of distributed renewable energy resources and the pressing need for decarbonization of the electricity supply have intensified interest in smart grid-integrated microgrids. However, most existing Energy Management System (EMS) approaches have been developed and validated for European or North American grid conditions, leaving a significant gap for developing economies such as India, where Time-of-Use (TOU) tariff structures, grid reliability constraints, and solar irradiance profiles differ substantially. This paper proposes a novel rule-based EMS tailored specifically for Indian grid conditions, integrating a 10 kWp solar photovoltaic (PV) array, a 20 kWh Battery Energy Storage System (BESS), and a TOU-based Demand Response (DR) strategy for a residential microgrid. The proposed EMS employs a deterministic priority-based scheduling algorithm that optimally coordinates energy resources across a 24-hour scheduling horizon to minimize electricity cost, reduce grid dependency, and lower carbon dioxide (CO₂) emissions. The system is modelled and simulated in MATLAB/Simulink R2023a using Typical Meteorological Year (TMY) solar irradiance data representative of Bhopal, Central India, and a standardised residential load profile derived from published literature on Indian load patterns. Simulation results across four seasonal scenarios demonstrate that the proposed EMS achieves a 28.0% reduction in peak load demand, a 26.6% reduction in daily electricity cost, a 36.0% reduction in grid dependency, a 35.4% reduction in CO₂ emissions, and a 62.5% improvement in voltage deviation at the Point of Common Coupling (PCC) compared to a base case without EMS. Sensitivity analysis across five weather scenarios validates the robustness of the approach. Comparative analysis with existing Fuzzy Logic and Model Predictive Control (MPC) methods confirms the superiority of the proposed system. Economic analysis yields a positive Net Present Value of approximately INR 6.8 lakh with a payback period of 11.2 years over a 25-year project lifetime. These results establish the proposed EMS as a practical, cost-effective, and scalable solution for residential microgrids under Indian grid conditions.