Battery storage; Electricity balancing; Electrolyzer; Fuel cell; Gas grid; Hydrogen grid; Hydrogen storage; Electrolyzers; Hydrogen costs; Hydrogen energy storages; Hydrogen plants; Hydrogen tank; Power; Building and Construction; Renewable Energy, Sustainability and the Environment; Mechanical Engineering; Energy (all); Management, Monitoring, Policy and Law; General Energy
Abstract :
[en] Integration of renewable energy sources as one of the pillars of the power system decarbonization efforts is making a significant progress. However, large shares of renewables require additional flexibility to keep the system stable. Battery storage was identified as one of the solutions to restore the grid balance in short timeframes, from day-ahead to real time. Currently, the research community is trying to find an adequate technology for longer duration energy storage. Hydrogen, as an energy carrier, appears as a good choice for such task. Apart from hydrogen energy storage potential, it can also be used to implement power-to-gas technology able to mitigate renewable energy curtailment through the process of electrolysis. The produced hydrogen gas can be either used to partially decarbonize the natural gas grids or simply sold as hydrogen fuel. The main novelty of this paper is the creation of a mathematical model of a renewable power plant coupled with a battery storage and a hydrogen facility for trading in three day-ahead energy markets, i.e. electricity, natural gas and hydrogen, plus in the power balancing market subject to the imbalance settlement mechanism. This approach enables a long-term profitability analysis of different renewable, battery and hydrogen architectures (hydrogen energy storage, power-to-gas and their combination) and their participation in different markets. The results indicate that the battery energy storage provides balancing services to the transmission system operator almost exclusively, while it never provides balancing for its own imbalance needs, since this option is less financially attractive. The electrolyzer and the fuel cell operate at least one third of the year, depending on the observed case, and often provide a reserve. When considering the hydrogen market, the electrolyzer operates almost the entire year due to lucrative hydrogen prices. Both the battery storage and the hydrogen tank perform arbitrage in the day-ahead market, where the battery optimizes its operation on an hourly basis (short-term) and the hydrogen tank on a daily basis (medium- to long-term).
Research center :
Interdisciplinary Centre for Security, Reliability and Trust (SnT) > FINATRAX - Digital Financial Services and Cross-organizational Digital Transformations
Disciplines :
Computer science Electrical & electronics engineering Management information systems
Author, co-author :
PAVIĆ, Ivan ✱; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX
Čović, Nikolina ; Department of Energy and Power Systems, University of Zagreb Faculty of Electrical Engineering and Computing, Zagreb, Croatia
Pandžić, Hrvoje ; Department of Energy and Power Systems, University of Zagreb Faculty of Electrical Engineering and Computing, Zagreb, Croatia
✱ These authors have contributed equally to this work.
External co-authors :
yes
Language :
English
Title :
PV–battery-hydrogen plant: Cutting green hydrogen costs through multi-market positioning
Original title :
[en] PV–battery-hydrogen plant: Cutting green hydrogen costs through multi-market positioning
This work was supported by the Croatian Science Foundation and the European Union through the European Social Fund under project Flexibility of Converter-based Microgrids – FLEXIBASE ( PZS-2019-02-7747 ).
EU Commission, Communication from the commission to the European parliament, the European council, the council, the European economic and social committee and the committee Of The Regions the European green deal COM/2019/640 final. 2019 URL https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52019DC0640.
Eurostat, Renewable energy statistics. 2020 URL https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Renewable_energy_statistics#Share_of_renewable_energy_more_than_doubled_between_2004_and_2019.
Koivisto, M., Sørensen, P., Maule, P., Nuño Martinez, E., Needs for flexibility caused by the variability and uncertainty in wind and solar generation in 2020, 2030 and 2050 scenarios. 2017, DTU Wind Energy, Denmark.
Impram, S., Nese, S.V., Oral, B., Challenges of renewable energy penetration on power system flexibility: A survey. Energy Strategy Rev, 31, 2020, 100539, 10.1016/J.ESR.2020.100539.
Miletić, M., Luburić, Z., Pavić, I., Capuder, T., Pandžić, H., Andročec, I., Marušić, A., A review of energy storage systems applications. Mediterranean conference on power generation, transmission, distribution and energy conversion (MEDPOWER 2018), 2018, 1–6, 10.1049/cp.2018.1926.
International Renewable Energy Agency, M., Utility scale batteries: Tech. rep., 2019, International Renewable Energy Agency URL /newsroom/articles/2020/Mar/Battery-storage-paves-way-for-a-renewable-powered-future.
Bobanac, V., Bašić, H., Pandžić, H., Determining lithium-ion battery one-way energy efficiencies: Influence of C-rate and coulombic losses. EUROCON 2021 - 19th IEEE international conference on smart technologies, proceedings, 2021, Institute of Electrical and Electronics Engineers Inc., 385–389, 10.1109/EUROCON52738.2021.9535542.
Penev, M., Hunter, C., Eichman, J.D., Energy storage: Days of service sensitivity analysis. 2019 URL https://www.osti.gov/biblio/1507686.
Bowen, T., Chernyakhovskiy, I., Xu, K., Gadzanku, S., Coney, K., Usaid grid-scale energy storage technologies primer: Tech. rep., 2021, NREL URL www.nrel.gov/publications.
Wind Europe, T., Wind energy and on-site energy storage: Tech. rep., 2017, Wind Europe URL https://windeurope.org/wp-content/uploads/files/policy/position-papers/WindEurope-Wind-energy-and-on-site-energy-storage.pdf.
Gevorgian, V., Wallen, R., Koralewicz, P., Mendiola, E., Shah, S., Morjaria, M., Provision of Grid Services by PV Plants with Integrated Battery Energy Storage System: Preprint: Tech. rep., 2020, NREL URL www.nrel.gov/publications.
Liu, M., Quilumba, F.L., Lee, W.J., Dispatch scheduling for a wind farm with hybrid energy storage based on wind and LMP forecasting. IEEE Trans Ind Appl 51:3 (2015), 1970–1977, 10.1109/TIA.2014.2372043.
Małkowski, R., Jaskólski, M., Pawlicki, W., Operation of the hybrid photovoltaic-battery system on the electricity Market—Simulation, real-time tests and cost analysis. Energies, 13(6), 2020, 1402, 10.3390/EN13061402 https://www.mdpi.com/1996-1073/13/6/1402/htmhttps://www.mdpi.com/1996-1073/13/6/1402.
Chakir, A., Tabaa, M., Moutaouakkil, F., Medromi, H., Julien-Salame, M., Dandache, A., Alami, K., Optimal energy management for a grid connected PV-battery system. Energy Rep 6 (2020), 218–231, 10.1016/J.EGYR.2019.10.040.
Yi, Z., Dong, W., Etemadi, A.H., A unified control and power management scheme for PV-Battery-based hybrid microgrids for both grid-connected and islanded modes. IEEE Trans Smart Grid 9:6 (2018), 5975–5985, 10.1109/TSG.2017.2700332.
Hasanpor Divshali, P., Evens, C., Optimum operation of battery storage system in frequency containment reserves markets. IEEE Trans Smart Grid 11:6 (2020), 4906–4915, 10.1109/TSG.2020.2997924.
Nitsch, F., Deissenroth-Uhrig, M., Schimeczek, C., Bertsch, V., Economic evaluation of battery storage systems bidding on day-ahead and automatic frequency restoration reserves markets. Appl Energy, 298, 2021, 117267, 10.1016/J.APENERGY.2021.117267.
Angenendt, G., Merten, M., Zurmühlen, S., Sauer, D.U., Evaluation of the effects of frequency restoration reserves market participation with photovoltaic battery energy storage systems and power-to-heat coupling. Appl Energy, 260, 2020, 114186, 10.1016/J.APENERGY.2019.114186.
Conte, F., Massucco, S., Schiapparelli, G.P., Silvestro, F., Day-ahead and intra-day planning of integrated BESS-PV systems providing frequency regulation. IEEE Trans Sustain Energy 11:3 (2020), 1797–1806, 10.1109/TSTE.2019.2941369.
He, G., Chen, Q., Kang, C., Pinson, P., Xia, Q., Optimal bidding strategy of battery storage in power markets considering performance-based regulation and battery cycle life. IEEE Trans Smart Grid 7:5 (2016), 2359–2367, 10.1109/TSG.2015.2424314.
Zobaa, A., Ribeiro, P., Aleem, S.A., Afifi, S., Energy storage at different voltage levels: Technology, integration, and market aspects. 2018, The Institution of Engineering and Technology – IET, Herts, United Kingdom, 10.17226/10922 URL https://shop.theiet.org/energy-storage-at-differ-1e.
Čović, N., Braeuer, F., McKenna, R., Pandžić, H., Optimal PV and battery investment of market-participating industry facilities. IEEE Trans Power Syst 36:4 (2021), 3441–3452, 10.1109/TPWRS.2020.3047260.
Hanif, S., Alam, M.J., Roshan, K., Bhatti, B.A., Bedoya, J.C., Multi-service battery energy storage system optimization and control. Appl Energy, 311, 2022, 118614, 10.1016/J.APENERGY.2022.118614.
Huang, B., Wang, J., Deep-reinforcement-learning-based capacity scheduling for PV-battery storage system. IEEE Trans Smart Grid 12:3 (2021), 2272–2283, 10.1109/TSG.2020.3047890.
Almasalma, H., Deconinck, G., Simultaneous provision of voltage and frequency control by PV-battery systems. IEEE Access 8 (2020), 152820–152836, 10.1109/ACCESS.2020.3018086.
Islam, M.S., Mithulananthan, N., Lee, K.Y., Suitability of PV and battery storage in EV charging at business premises. IEEE Trans Power Syst 08858950, 33(4), 2018, 4382–4396, 10.1109/TPWRS.2017.2774361.
Li, S., Zhu, J., Dong, H., Zhu, H., Fan, J., A novel rolling optimization strategy considering grid-connected power fluctuations smoothing for renewable energy microgrids. Appl Energy, 309, 2022, 118441, 10.1016/J.APENERGY.2021.118441.
Narayanan, V., Kewat, S., Singh, B., Solar PV-BES based microgrid system with multifunctional VSC. IEEE Trans Ind Appl 56:3 (2020), 2957–2967, 10.1109/TIA.2020.2979151.
Xia, Y., Yu, M., Yang, P., Peng, Y., Wei, W., Generation-storage coordination for Islanded DC microgrids dominated by PV generators. IEEE Trans Energy Convers 34:1 (2019), 130–138, 10.1109/TEC.2018.2860247.
Fatin Ishraque, M., Shezan, S.A., Ali, M.M., Rashid, M.M., Optimization of load dispatch strategies for an islanded microgrid connected with renewable energy sources. Appl Energy, 292, 2021, 116879, 10.1016/J.APENERGY.2021.116879.
Zhang, B., Dehghanian, P., Kezunovic, M., Optimal allocation of PV generation and battery storage for enhanced resilience. IEEE Trans Smart Grid 10:1 (2019), 535–545, 10.1109/TSG.2017.2747136.
Li, J., You, H., Qi, J., Kong, M., Zhang, S., Zhang, H., Stratified optimization strategy used for restoration with photovoltaic-battery energy storage systems as black-start resources. IEEE Access 7 (2019), 127339–127352, 10.1109/ACCESS.2019.2937833.
Pavić, I., Luburić, Z., Pandžić, H., Capuder, T., Andročec, I., Defining and evaluating use cases for battery energy storage investments: Case study in Croatia. Energies, 12, 2019, 376, 10.3390/EN12030376 https://www.mdpi.com/1996-1073/12/3/376/htmhttps://www.mdpi.com/1996-1073/12/3/376.
Luburić, Z., Pandžić, H., Plavšić, T., Teklić, L., Valentić, V., Role of energy storage in ensuring transmission system adequacy and security. Energy 156 (2018), 229–239, 10.1016/J.ENERGY.2018.05.098.
El-Shafie, M., Kambara, S., Hayakawa, Y., El-Shafie, M., Kambara, S., Hayakawa, Y., Hydrogen production technologies overview. J Power Energy Eng 7 (2019), 107–154, 10.4236/JPEE.2019.71007 http://www.scirp.org/journal/PaperInformation.aspx?PaperID=90227http://www.scirp.org/Journal/Paperabs.aspx?paperid=90227.
International Energy Agency. The Future of Hydrogen. Tech. rep., 2019, URL.
Elberry, A.M., Thakur, J., Santasalo-Aarnio, A., Larmi, M., Large-scale compressed hydrogen storage as part of renewable electricity storage systems. Int J Hydrogen Energy 46:29 (2021), 15671–15690, 10.1016/J.IJHYDENE.2021.02.080.
Gerwen, R.V., Eijgelaar, M., Bosma, T., The promise of seasonal storage: Tech. rep., 2020, DNV GL.
Advisory, G., Consulting, A.A., Hydrogen to support electricity systems: Tech. rep., 2020, GHD Advisory and ACIL Allen Consulting, 105.
Alshehri, F., Suárez, V.G., Rueda Torres, J.L., Perilla, A., van der Meijden, M.A., Modelling and evaluation of PEM hydrogen technologies for frequency ancillary services in future multi-energy sustainable power systems. Heliyon, 5(4), 2019, e01396, 10.1016/J.HELIYON.2019.E01396.
Dozein, M.G., Jalali, A., Mancarella, P., Fast frequency response from utility-scale hydrogen electrolyzers. IEEE Trans Sustain Energy 12:3 (2021), 1707–1717, 10.1109/TSTE.2021.3063245.
Gao, D., Jiang, D., Liu, P., Li, Z., Hu, S., Xu, H., An integrated energy storage system based on hydrogen storage: Process configuration and case studies with wind power. Energy 66 (2014), 332–341, 10.1016/J.ENERGY.2014.01.095.
Komiyama, R., Otsuki, T., Fujii, Y., Energy modeling and analysis for optimal grid integration of large-scale variable renewables using hydrogen storage in Japan. Energy 81 (2015), 537–555, 10.1016/J.ENERGY.2014.12.069.
Mayyas, A., Wei, M., Levis, G., Hydrogen as a long-term, large-scale energy storage solution when coupled with renewable energy sources or grids with dynamic electricity pricing schemes. Int J Hydrogen Energy 45:33 (2020), 16311–16325, 10.1016/J.IJHYDENE.2020.04.163.
Guerra, O.J., Zhang, J., Eichman, J., Denholm, P., Kurtz, J., Hodge, B.-M., The value of seasonal energy storage technologies for the integration of wind and solar power. Energy Environ Sci 13:7 (2020), 1909–1922, 10.1039/D0EE00771D https://pubs.rsc.org/en/content/articlehtml/2020/ee/d0ee00771dhttps://pubs.rsc.org/en/content/articlelanding/2020/ee/d0ee00771d.
European Commission, O.J., Communication from the commission to the European parliament, the council, the European economic and social committee and the committee of the regions a hydrogen strategy for a climate-neutral Europe Europe. 2020 URL https://www.eu2018.at/calendar-events/political-events/BMNT-.
European Commission, O.J., A hydrogen strategy for a climate-neutral Europe. 2020 URL https://www.eu2018.at/calendar-events/political-events/BMNT-.
Department for Business, Energy & Industrial Strategy, U., Hydrogen Production Costs 2021: Tech. Rep., 2021, Department for Business, Energy & Industrial Strategy, UK URL https://www.iea.org/data-and-statistics/charts/hydrogen-production-costs-by-production-source-2018.
ICCT, U., Assessment of hydrogen production costs from electrolysis: United states and Europe. 2020, International Council on Clean Transportation (ICCT), 1–73 URL https://theicct.org/sites/default/files/publications/final_icct2020_assessment_of_hydrogen_production_costsv2.pdf.
Wang, A., Jens, J., Mavins, D., Moultak, M., Schimmel, M., Leun, K.V.D., Peters, D., Buseman, M., Analysing future demand, supply, and transport of hydrogen: European hydrogen backbone. 2021 URL https://transparency.entsog.eu/.
of Transmission System Operators for Gas, E.N., Entsog 2050 roadmap for gas grids. 2019 URL www.entsog.eu.
PwC, E.N., HyWay 27: hydrogen transmission using the existing natural gas grid ? final report for the ministry of economic affairs and climate policy: Tech. Rep., 2021, PwC/Strategy&, Amsterdam.
Götz, M., Lefebvre, J., Mörs, F., McDaniel Koch, A., Graf, F., Bajohr, S., Reimert, R., Kolb, T., Renewable Power-to-Gas: A technological and economic review. Renew Energy 85 (2016), 1371–1390, 10.1016/J.RENENE.2015.07.066.
Schiebahn, S., Grube, T., Robinius, M., Tietze, V., Kumar, B., Stolten, D., Power to gas: Technological overview, systems analysis and economic assessment for a case study in Germany. Int J Hydrogen Energy 40:12 (2015), 4285–4294, 10.1016/J.IJHYDENE.2015.01.123.
Janke, L., McDonagh, S., Weinrich, S., Murphy, J., Nilsson, D., Hansson, P.A., Nordberg, A., Optimizing power-to-H2 participation in the Nord Pool electricity market: Effects of different bidding strategies on plant operation. Renew Energy 156 (2020), 820–836, 10.1016/J.RENENE.2020.04.080.
Zhang, R., Jiang, T., Li, F., Li, G., Chen, H., Li, X., Coordinated bidding strategy of wind farms and power-to-gas facilities using a cooperative game approach. IEEE Trans Sustain Energy 11:4 (2020), 2545–2555.
Pan, G., Gu, W., Lu, Y., Qiu, H., Lu, S., Yao, S., Accurate modeling of a profit-driven power to hydrogen and methane plant toward strategic bidding within multi-type markets. IEEE Trans Smart Grid 12:1 (2021), 338–349, 10.1109/TSG.2020.3019043.
Li, X., Mulder, M., Value of power-to-gas as a flexibility option in integrated electricity and hydrogen markets. Appl Energy, 304, 2021, 117863, 10.1016/J.APENERGY.2021.117863.
Pongrašić, M., Tomšić, Željko., Cost-benefit analysis of smart grid projects implementation. J Energy (Energ), 66, 2017, 87–98, 10.37798/EN2017661-497 URL http://www.journalofenergy.com/index.php/joe/article/view/97/73.
ACER/CEER, M., Annual report on the results of monitoring the internal electricity and natural gas markets in 2020 gas wholesale markets volume. 2021.
den Ouden B. A hydrogen exchange for the climate. Tech. rep., Amsterdam; 2020, p. 1–23, URL.
S&P Global Platts, B., Latest oil, energy & metals news, market data and analysis. 2021 URL https://www.spglobal.com/platts/en.
Croatian Transmission System Operator, B., HOPS. 2021 URL https://www.hops.hr/.
Croatian Gas Transmission System Operator, B., PLINACRO d.o.o. 2021 URL https://www.plinacro.hr/.
Pandžić, H., Bobanac, V., An accurate charging model of battery energy storage. IEEE Trans Power Syst 34:2 (2019), 1416–1426, 10.1109/TPWRS.2018.2876466.
Global hydrogen review 2021: Tech. rep., 2021, IEA.
San Martín, J.I., Zamora, I., Asensio, F.J., García-Villalobos, J., San Martín, J.J., Aperribay, V., Control and management of a fuel cell microgrid. Energy efficiency optimization. Renew Energy Power Qual J 1:11 (2013), 314–319, 10.24084/REPQJ11.290.
Chauvin, A., Sari, A., Hijazi, A., Bideaux, E., Optimal sizing of an energy storage system for a hybrid vehicle applied to an off-road application. IEEE/ASME international conference on advanced intelligent mechatronics, AIM, 2014, Institute of Electrical and Electronics Engineers Inc., 775–780, 10.1109/AIM.2014.6878173.
Rafique, M.K., Haider, Z.M., Mehmood, K.K., Uz Zaman, M.S., Irfan, M., Khan, S.U., Kim, C.H., Optimal scheduling of hybrid energy resources for a smart home. Energies, 11(11), 2018, 10.3390/EN11113201.
