Stochastic optimal investment strategy for net-zero energy houses

In this research, Net-Zero Energy Houses (ZEHs) is investigated that harness regionally produced electricity from photovoltaic (PV) panels and fuel cells, integrating them into a local power system in pursuit of achieving carbon neutrality. This article examines the impact of electricity sharing among users who are working towards attaining ZEH status through the integration of PV panels and battery storage devices. Two potential scenarios are proposed: the first assumes that all users individually invest in storage devices, hence minimizing their costs on a local level without energy sharing; the second envisions cost minimization through the collective use of a shared storage device, managed by a central manager. These two scenarios are formulated as a stochastic convex optimization and a cooperative game, respectively. To tackle the stochastic challenges posed by multiple random variables, the Monte Carlo sample average approximation (SAA) is applied to obtain solvable deterministic convex problems. Last, to demonstrate the practical applicability of these models, the proposed scenarios are implemented in the Jono neighborhood in Kitakyushu, Japan.