Design of an energy hub based on natural gas and renewable energy sources

Abstract

SUMMARY This paper presents a simulation model for an energy hub consisting of natural gas (NG) turbines as the main sources of energy (including both electricity and heat) and two renewable energy sources—wind turbines (WTs) and photovoltaic (PV) solar cells. The hub also includes water electrolyzers for hydrogen production. The hydrogen serves as an energy storage medium that can be used in some transportation applications, or it can be mixed with the NG feed stream to improve the emission profile of the gas-turbine unit. The capacity of the designed hub is meant to simulate and replace the coal-fired Nanticoke Generating Station with a NG-fired power plant. Therefore, the aim of this work is to develop a simulated model that combines different energy generation technologies, which are evaluated in terms of the total energy produced, the cost per kWh of energy generated, and the amount of emissions produced. The proposed model investigates the benefits, both economic and environmental, the technological barriers, and the challenges of energy hubs by developing several scenarios. The simulation of these scenarios was done using General Algebraic Modeling System (GAMS®). Although the software is strongly known for its optimization capability, the mixed complementary problems solver makes it a strong tool for solving equilibrium problems. Excess energy produced during off-peak demand by WTs and PV solar cells was used to feed the electrolyzer to produce H2 and O2. The proposed approach shows that a significant reduction in energy cost and greenhouse gas emissions were achieved, in addition to the increased overall efficiency of the energy hub. Out of the examined three scenarios, Scenario C appeared to be the most feasible option for a combination of renewable and non-renewable technologies as it did not only produce hydrogen, but also provided electricity at relatively lower prices. Copyright © 2013 John Wiley & Sons, Ltd.