Levelized Cost of Storage (LCOS) for a hydrogen system

Abstract

In a 100% renewable energy scenario, power generation fluctuates, requiring management and control of this generation. Storage is presented as a solution to regulate production discontinuity. In particular, seasonal storage can compensate for long-term fluctuations and serve as a necessary complement to short-term storage management. Due to the potential role of hydrogen in the decarbonization of energy production systems, this research attempts to analyse the levelized cost of storage (LCOS) of this energy carrier as a solution to long-term electricity requirements. The research focuses on the analysis of the total Power-to-Power (P2P) process cost, all factors affecting the input of electricity up to the output of electricity after the conversion of the hydrogen are considered. A transformation of the surplus electricity to hydrogen through a PEM electrolyzer is proposed in this paper. This hydrogen would be stored seasonally in salt caverns. Finally, a gas-to-energy transformation using gas turbines or fuel cells is contemplated. The analysis presents highly competitive results in terms of cost, demonstrating the system's competitiveness and potential: the turbine powered by 100% hydrogen solution appears to be more cost effective than the fuel cell solution: 0.207€/kWh and 0.284€/kWh respectively. Hydrogen storage presents itself as the most cost-effective long-term alternative in the near future, even better than pumped hydro, compressed air or batteries.