Abstract
Alongside the rapid expansion of wind power installation in China, wind curtailment is also mounting rapidly due to China’s energy endowment imbalance. The hydrogen-based wind-energy storage system becomes an alternative to solve the puzzle of wind power surplus. This article introduced China’s energy storage industry development and summarized the advantages of hydrogen-based wind-energy storage systems. From the perspective of resource conservation, it estimated the environmental benefits of hydrogen-based wind-energy storages. This research also builds a valuation model based on the Real Options Theory to capture the distinctive flexible charging and discharging features of the hydrogen-based wind-energy storage systems. Based on the model, simulation results, including the investment value and operation decision of the hydrogen energy storage system with different electricity prices, system parameters, and different levels of subsidies, are presented. The results show that the hydrogen storage system fed with the surplus wind power can annually save approximately 2.19–3.29 million tons of standard coal consumption. It will reduce 3.31–4.97 million tons of CO2, SO2, NOx, and PM, saving as much as 286.6–429.8 million yuan of environmental cost annually on average. The hydrogen-based wind-energy storage system’s value depends on the construction investment and operating costs and is also affected by the mean-reverting nature and jumps or spikes in electricity prices. The market-oriented reform of China’s power sector is conducive to improve hydrogen-based wind-energy storage systems’ profitability. At present, subsidies are still essential to reduce initial investment and attract enterprises to participate in hydrogen energy storage projects.
Highlights
In China, with the rapid development of renewable energy power, installed wind power capacity is increasing year by year
Where Ei(t) represents the input power of the surplus wind into the hydrogen energy storage system; a and b are two periodic variation parameters of excess wind power’s input power; t0 is the time of maximum input power in 1 year; α1 is the average recovery rate; σ1 is volatility; dZ is a standard Wiener process
We focus on the annual total cost during the operational stage, so set the time when the energy storage system is officially put into operation as t0
Summary
In China, with the rapid development of renewable energy power, installed wind power capacity is increasing year by year. In the process of energy storage, a considerable volume of curtailed wind power is fed to the wind-power HESS, and this part of electric energy can be directly stored by electrolyzing water to produce hydrogen without purchase cost. Where Ei(t) represents the input power of the surplus wind into the hydrogen energy storage system; a and b are two periodic variation parameters of excess wind power’s input power; t0 is the time of maximum input power in 1 year; α1 is the average recovery rate; σ1 is volatility; dZ is a standard Wiener process. Dt where I represents the energy storage capacity of the wind-power HESS and a(u) indicates the efficiency of electrohydrogen conversion when hydrogen is input or output, a(u)≥0. Suppose the initial hydrogen energy storage system is at full working capacity, I0 105 kWh
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