Techno-economic Analysis of Optimal Grid-Connected Renewable Electricity and Hydrogen-to-Power Dispatch

Abstract

One of the significant challenges in renewable integration is balancing supply and demand. The variability in generation and demand forces the grid to experience significant market price volatility. Moreover, electricity curtailment is adhered to during low-demand periods. Hydrogen Energy storage systems (HESS) can provide power dispatch flexibility and facilitate the reduction in curtailment. Unlike other storage systems such as batteries, the energy and power capacities for HESS design can be decoupled, resulting in a long-duration storage solution. In our paper, we perform electricity dispatch optimization from renewable sources such as solar and wind to the electricity market, where hydrogen is optimally produced using electrolysis, stored during low electricity prices, and converted to electricity using fuel cells to support the grid. The capital cost optimization suggests high profits for investors leveraging market price volatility even with low HESS round-trip efficiency and high upfront costs.