How Power-to-Gas strategy could reduce national Natural Gas consumption over the energy crisis period

Abstract

Europe is facing an energy crisis caused by the dramatic rise in gas prices. This situation is damaging the European economy and urgent measures to reduce gas consumption are crucial in the short term. This paper aims to analyse the potential contribution of the Power-to-Gas strategy to reduce the Italian consumption of Natural Gas (NG) in the context of the current energy crisis. To do so, the Italian energy system has been modelled by means the EnergyPLAN software. The electrolysers’ installation in the Italian energy systems has been simulated in combination with different levels of additional RES installation. The hydrogen production and the NG abatement potential have been calculated in each simulated scenario. Furthermore, the Natural Gas Abatement Cost (NGAC) has been assessed. By installing 1.5 GW of electrolysers, along with an additional 25 GW of renewables, about 140 ktonH2/year can be produced only by exploiting the RES excess. The total NG reduction due to both the RES generation and the hydrogen injection is more than 60 TWh/year. The NG abatement cost varies between 45 and 54 €/MWh. At current gas prices, it is therefore extremely cheaper to invest in a drastic reduction of natural gas than to buy the same amount of gas on the wholesale market. Therefore, the current energy crisis can be an opportunity to accelerate the energy transition process. The proposed solutions allow a substantial reduction in gas consumption with the consequent reduction in emissions and the country’s energy dependency.