Enhancing the economic viability and reliability of renewables based electricity supply through Power-to-Gas-to-Power with green hydrogen

Abstract

This study explores the role of green hydrogen in the Power-to-Gas-to-Power process as a solution to grid instability caused by the rise of volatile renewable energy sources. A comprehensive numerical model is developed to evaluate the economic viability and reliability of electricity supply, using key performance indicators such as system levelized cost of electricity and loss of power supply probability. Through simulations based on hourly renewable energy production profiles for a scenario with an average power demand of 100 MW, the effectiveness of batteries and green hydrogen is compared. Findings indicate that while batteries are suited to photovoltaic systems, green hydrogen excels in wind energy applications, particularly in wind-solar hybrid setups. Here, green hydrogen substantially enhances the power supply reliability (loss of probability reduced from 0.23 to 0.06) and achieves a competitive system levelized cost of electricity at 0.157 USD/kWh. Sensitivity analysis regarding system size and cost variations further highlights green hydrogen's potential, providing strategic insights for improving grid stability and economic efficiency.