Solar-hydrogen electricity generation in the context of global CO2 emission reduction

Abstract

The relative costs and CO2 emission reduction benefits of advanced centralized fossil fuel electricity generation, hybrid photovoltaic-fossil fuel electricity generation, and total solar electricity generation with hydrogen storage are compared. Component costs appropriate to the year 2000–2010 time frame are assumed throughout. For low insolation conditions (160 W m−2 mean annual solar radiation), photovoltaic electricity could cost 5–13 cents/kWh by year 2000–2010, while for high insolation conditions (260 W m−2) the cost could be 4–9 cents/kWh. Advanced fossil fuel-based power generation should achieve efficiencies of 50% using coal and 55% using natural gas. Carbon dioxide emissions would be reduced by a factor of 2 to 3 compared to conventional coal-based electricity production in industrialized countries. In a solar-fossil fuel hybrid, some electricity would be supplied from solar energy whenever the sun is shining and remaining demand satisfied by fossil fuels. This increases total capital costs but saves on fuel costs. For low insolation conditions, the costs of electricity increases by 0–2 cents/kWh, while the cost of electricity decreases in many cases for high insolation conditions. Solar energy would provide 20% or 30% of electricity demand for the low and high insolation cases, respectively. In the solar-hydrogen energy system, some photovoltaic arrays would provide current electricity demand while others would be used to produce hydrogen electrolytically for storage and later use in fuel cells to generate electricity. Electricity costs from the solar-hydrogen system are 0.2–5.4 cents/kWh greater than from a natural gas power plant, and 1.0–4.5 cents/kWh greater than from coal plant for the cost and performance assumptions adopted here. The carbon tax required to make the solar-hydrogen system competitive with fossil fuels ranges from $70–660/tonne, depending on the cost and performance of system components and the future price of fossil fuels.