IoT-based Energy Optimization and Demand
Response System for Renewable Energy Integration
Koushik Dewri and Mohammad Rejwan Uddin
Fab Lab IUB
Independent University, Bangladesh
Dhaka, Bangladesh
Email: koushikdewri33@gmail.com ; rejwan@iub.edu.bd
Abstract—The integration of renewable energy sources into the
existing power grid presents opportunities and challenges for
energy optimization and demand response. This project
proposes an IoT-based energy optimization and demand
response system aimed at effectively utilizing renewable energy
and optimizing energy consumption. The system employs a
network of sensors and actuators to collect real-time data on
energy consumption, environmental conditions, and renewable
energy generation. This data is processed and analyzed using
energy optimization algorithms to identify opportunities for
energy efficiency and demand response strategies. The system
enables intelligent control of energy-consuming devices based
on optimization algorithms, facilitating load balancing,
demand forecasting, and peak shaving. Additionally, it
incorporates demand response techniques such as load
shedding and load shifting to adapt energy consumption to grid
conditions and maximize the utilization of renewable energy
sources. The system is integrated with wireless communication
modules for IoT connectivity, allowing remote monitoring,
control, and data exchange with a central server or cloud
platform.
Keywords— Renewable, Optimization, Consumption, demand,
environmental, Utilization, load-shedding, customizable,
integration.
I. INTRODUCTION
The transition towards sustainable energy sources
is a global imperative, and the integration of renewable
energy systems into various sectors has gained significant
attention. Sectors such as residential, commercial, and
industrial play pivotal roles in shaping energy consumption
patterns.Approximately 25 billion devices will be connected
to the Internet by 2020 and the data collected through these
connections will help in big data analysis, planning and
management of data with autonomous intelligent decision-
making (Ray 2018) [8].
Fig. 1. Solar cell house installer hybrid component system for
smarthome solar panel inverter
Intermittency of renewable energy: renewable
energy sources such as solar and wind power exhibit
inherent intermittency, making it challenging to efficiently
integrate them into the power grid [9][10][11]. This project
addresses the problem by optimizing energy consumption
based on real-time renewable energy availability.
Lack of energy efficiency: many buildings and
systems consume energy inefficiently, leading to
unnecessary energy wastage. In order to minimize power
losses in the power distribution network, wireless power
transmission has been known for centuries to clean sources
of electricity [3].
Inadequate demand response: This is a system that
can work with computing devices, digital and mechanical
machines, objects, and living creatures [6].By incorporating
demand response strategies, the project aims to manage
energy consumption during peak periods and ensure the
efficient utilization of available energy resources.
Other advantages of a photo Voltaic systems are: free
energy, reliable power reliability, and quick installation
[4].This project addresses these limitations by implementing
iot-based monitoring and control mechanisms.
Optimizing operation cost and reducing carbon
emissions in smart grids with integrated renewable energy
sources (RESs) has been a focus of research. In Bangladesh,
the renewable energy sector mainly consists of solar, wind
and biomass energies [5]. Different power conversion
stages, energy transmission paths, emissions, and a systems
response corresponding to the driver’s profile are analyzed
systematically [1].
The model employs a multi-objective genetic
algorithm (MOGA) to simultaneously minimize cost and
emissions. A prototype of this charger is built and compared
with a conventional charger [2]. By using Pareto optimal
fronts, it identifies solutions that balance cost-efficiency and
environmental sustainability. Results show a 24% reduction
in operation cost and 28% reduction in carbon emissions
compared to existing models, demonstrating the
effectiveness of the proposed approach [12].
Previous research has explored mathematical
models, predictive tools like probability density functions
and Monte Carlo simulations, and incentive-based payment
systems in DRPs. These tools provide insights into
renewable source behavior and encourage load shifting.
Overall, optimizing smart grids with RESs and DRPs offers
promising solutions for cost-efficiency and sustainability
[13].
II. PROPOSED SYSTEM METHODOLOGYAND SIMULATION
The project aims to design and implement an IoT-
based Energy Optimization and Demand Response System
that seamlessly integrates renewable energy sources, such as
solar panels, with conventional energy sources. The system
utilizes the ESP32 microcontroller along with the Current
Sensor ACS712 30A and Voltage Sensor Module DC 0-25V
to monitor real-time energy consumption and generation. It
also includes control mechanisms for smart devices like a
fan and light, enabling users to actively manage their energy
usage and participate in demand response programs.
Fig. 2. Block Diagram of our project
Hardware Setup: The system hardware consists of
an ESP32 microcontroller, Current Sensor ACS712 30A,
Voltage Sensor Module DC 0-25V, a fan, light, solar panel
with a solar stand, and a battery. The ESP32 acts as the
central control unit, interfacing with sensors and smart
devices.
Fig. 3. Flowchart of our project
IoT Sensors and Data Collection: The Current
Sensor ACS712 30A and Voltage Sensor Module DC 0-25V
are used to measure the current and voltage levels of the
energy flowing through the system. The ESP32 reads data
from these sensors and sends it to the cloud for further
analysis.
Fig. 4. System design and simulation of our project with Proteus
The Voltage Sensor Module DC 0-25V is
connected to the ESP32's ADC1 pin, which reads the
voltage generated by the solar panel.The Current Sensor
ACS712 30A is connected to the ESP32's ADC2 pin, which
reads the current flowing through the system.The ESP32
processes the sensor data to calculate the real-time power
generated by the solar panel using the formula:
P_solar = V_solar * I_solar
Pin (W) - Input Power: Pin = VPV × IPV
Po (W) - Output Power: Po = Vb × Ib
Po
η (%) - Efficiency: ×100
Pin
VPV is the solar panel voltage (V) at a specific time.IPV is
the solar panel current (A) at a specific time.Vb is the battery
voltage (V) at a specific time.Ib is the battery current (A) at
a specific time.Pin is the input power (W) of the solar
panel.Po is the output power (W) of the battery.η is the
efficiency (%) of the system.
The solar panel voltage (VPV) shows an upward trend from
19V in the morning to 25V around midday. In contrast, the
battery voltage (Vb) slightly decreases from 13.5V to 12.2V
during the same period.
Both the solar panel current (IPV) and battery current (Ib)
exhibit a declining trend as the day progresses, following the
pattern of decreasing sunlight intensity.
Calculated input power (Pin), derived from the product of
VPV and IPV, varies from 19.2W to 34.2W. Conversely,
output power (Po), obtained by multiplying Vb and Ib,
decreases from 6.75W to 0.125W.
The system's efficiency (η) is calculated by dividing Po by
Pin and then multiplying by 100. Efficiency ranges from
0.6% to 19.7%.
Energy Optimization Algorithm: The energy
optimization algorithm, implemented on the ESP32, uses the
analyzed data to optimize energy consumption and
utilization of renewable energy sources [15]. It dynamically
adjusts energy loads and renewable energy generation to
minimize energy costs and maximize the use of clean
energy.
Demand Response Implementation: The ESP32
enables the implementation of demand response strategies.
Based on real-time data and demand response signals from
utility companies, the system triggers actions to shift energy
consumption from peak to off-peak hours. By implementing
a renewable energy source to run those motors can save communication link's integrity was verified through serial
energy from national grid [7]. communication monitoring.
Renewable Energy Integration: The system
integrates the solar panel and battery into the energy grid.
The ESP32 monitors the output of the solar panel and
battery charge levels to ensure efficient utilization of
renewable energy sources [16].
Control and Actuation: The ESP32 acts as the
control center, executing the energy optimization algorithm
and managing demand response actions [17]. It
communicates with the fan and light to adjust their energy
consumption patterns according to demand response signals
and energy availability.
User Interface and Mobile Application: A user-
friendly mobile application is developed to provide end- Fig. 5. Prototype hardware development for testing purposes
users with real-time insights into their energy usage, cost,
and carbon footprint. The application allows users to control Control Module Functionality: The Smart Fan and
the fan and light and participate in demand response Smart Light control modules underwent extensive testing to
programs. ascertain their response to commands sent by the ESP32.
Communication and Connectivity: The ESP32 uses Fan speed modulation and light intensity control were
various communication protocols, such as Wi-Fi and evaluated.
MQTT, to establish connections with sensors, smart devices, Solar Controller Integration: The Solar Controller
and the cloud platform[18]. This enables real-time data was integrated into the system, and its ability to manage
exchange and remote control of devices. solar power contribution to the grid was evaluated under
Results and Analysis: The project evaluates the varying load conditions.
system's performance through real-world testing. It
measures energy savings, cost reduction, and the impact on
carbon emissions. The results are analyzed to assess the
effectiveness of the IoT-based energy optimization and
demand response system.
The conclusion summarizes the achievements of
the project and highlights the benefits of the proposed
system in optimizing energy usage, promoting renewable
energy integration, and enabling demand response
capabilities [19]. It discusses the potential for wider
adoption and future enhancements of the system.
Fig. 6. Marge all components
III. HARDWARE DEVELOPMENT AND TESTING
IV. PERFORMANCE ANALYSIS AND DISCUSSION
A comprehensive table of specifications was
prepared outlining the technical characteristics of each The successful implementation of the "IoT based
component involved. This facilitated a clear understanding Energy Optimization and Demand Response System for
of their capabilities and compatibility. Renewable Energy Integration" presents promising
advancements in the field of sustainable energy
TABLE I. COMPONENT SPECIFICATIONS management. This section critically evaluates the system's
performance and discusses its implications.
Component Model/Type MeasurementRang Accuracy
e

Current Sensor ACS712 30A -30A to 30A ±0.5A

Voltage Sensor DC 0-25V 0V to 25V ±0.1V

Module

ESP32 ESP32 Dev

Microcontrolle Kit
r

Lab Testing Details:

Current and Voltage Sensor Calibration: The
ACS712 30A and Voltage Sensor Module were calibrated
using standard current and voltage sources to ensure precise
measurement accuracy.
ESP32 Communication Check:The ESP32 was
programmed to acquire data from the sensors. The
Fig. 7. ThingSpeak channel live data stream
Energy Optimization: The system's primary
objective of energy optimization was evaluated under
various scenarios [20]. By intelligently analyzing real-time
data from current and voltage sensors, the ESP32 effectively
controlled the operation of connected devices. This resulted
in reduced energy consumption during peak hours and
enhanced utilization of renewable energy sources. The technology with renewable energy integration and demand
system's ability to seamlessly shift loads based on demand response strategies. By optimizing energy consumption
response strategies was a significant achievement. The patterns, leveraging renewable resources, and implementing
achieved reduction in energy consumption by an average of demand response mechanisms, the project provides a
20% during peak hours is indicative of the system's tangible solution for sustainable energy management.
effectiveness [21]. Challenges and potential avenues for further improvement
were illuminated, emphasizing the project's role in fostering
TABLE II. DAILY POWER GENERATION SCHEME FROM SOLAR. environmentally friendly practices and economic feasibility.
VPV Vb IPV Pin Po Through this endeavor, the project underscores the power of
Time Ib (A) η (%)
(V) (V) (A) (W) (W) technology in shaping a more sustainable and responsive
8am 22.5 12.8 0.85 1.1 18.223 1.0 5.47 energy ecosystem.
9am 20 12.5 0.87 0.96 19.011 0.92 4.90
10am 21.6 12.3 0.87 0.89 20.878 0.81 4.45
11am 23 12.1 0.89 0.81 21.921 0.77 3.89
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