Simulation-based sensitivity analysis of an on-site hydrogen production unit in Hungary

Abstract

This article examines the additional profit that can be achieved with the integrated operation of an on-site electrolyser, a hydrogen tank, a photovoltaic system, and a wind power plant based on Hungarian data from 2019. The results of the optimisation show that the system economically reduces the volatility of weather-dependent renewable production, so there is a promising demand-side management potential in coordination. We found that the operating profit is highest in April at EUR 19,416, 18,932 in July, and lowest at EUR 17,075 in January. The production curve of photovoltaic capacities is better matched to fuel demand, so increasing the share of solar energy results in lower balancing activity but higher profits. Increasing the size of the hydrogen storage and electrolyser, with constant hydrogen demand and prices, will cause a convergent increase in profits, however above a 10 kg storage capacity or 350 kW electrolyser capacity there is no substantial profit increase. In the case of the economically optimal asset size, there is a slight competition between the electricity market and the hydrogen distribution activity. The choice between the two activities depends on current electricity and hydrogen prices and the cost of unmet hydrogen demand.