Evaluation of Grid-Connected and Off-Grid Operations of Hybrid Power Plant with P2H Integration
01 HYB24-44
Presented by: Juan Pablo Murcia Leon
Large-scale hybrid power plants (HPPs) integrate wind, solar, and battery storage into a unified facility with a single grid connection. As the use of renewable energy (RE) sources grows, coupled with sector integration, HPPs are rapidly evolving to include additional energy vectors. Anticipating a significant surge in demand for hydrogen due to the electrification needs of a diverse range of energy sectors, this work explores green hydrogen production, termed as Power-to-Hydrogen (P2H), utilizing RE resources of HPP. The incorporation of P2H technology into HPPs addresses fluctuations in non-dispatchable production from RE, minimizes curtailment, and potentially offers improved revenues from energy markets from both electricity and hydrogen, compared to directly connecting these technologies to the grid.
Thus, this work aims to investigate the value of producing hydrogen or asking for a grid connection permit and energy arbitrage in the electricity market. The energy management system (EMS) of HPP with P2H modeled in our previous work, finds an operational schedule of when to produce hydrogen and when to sell electricity to the grid to maximize the revenue for the HPP owner. Utilizing this EMS model and considering the cost of investment associated with the P2H unit, the analysis has been done to identify the financial improvements in HPP operations producing hydrogen with or without grid connection. The decision to have a grid connection alongside a P2H unit to maximize Net Present Values per Capital Expenditures (NPV/CAPEX) is contingent on factors such as plant location (offshore or onshore), electricity and hydrogen prices, as well as the characteristics of the P2H unit (such as the size and type of electrolyzer).
Our work significantly contributes to the field by conducting a comprehensive performance evaluation of HPPs incorporating P2H units under diverse scenarios, considering both grid-connected and non-grid-connected configurations. The analysis has been performed for various sites in Europe using the HyDesign tool. Through sensitivity studies encompassing variations in hydrogen prices and other key parameters, we ascertain the optimal conditions for seeking a grid connection permit and enhancing revenue streams from electricity markets. The analysis reflects that the relevance of asking for a grid connection for an HPP owner with P2H depends upon multiple factors impacting NPV such as plant location, electricity market price, price of hydrogen, size and technology of electrolyzer; and investment cost associated with HPP, P2H unit and grid connection.
Thus, this work aims to investigate the value of producing hydrogen or asking for a grid connection permit and energy arbitrage in the electricity market. The energy management system (EMS) of HPP with P2H modeled in our previous work, finds an operational schedule of when to produce hydrogen and when to sell electricity to the grid to maximize the revenue for the HPP owner. Utilizing this EMS model and considering the cost of investment associated with the P2H unit, the analysis has been done to identify the financial improvements in HPP operations producing hydrogen with or without grid connection. The decision to have a grid connection alongside a P2H unit to maximize Net Present Values per Capital Expenditures (NPV/CAPEX) is contingent on factors such as plant location (offshore or onshore), electricity and hydrogen prices, as well as the characteristics of the P2H unit (such as the size and type of electrolyzer).
Our work significantly contributes to the field by conducting a comprehensive performance evaluation of HPPs incorporating P2H units under diverse scenarios, considering both grid-connected and non-grid-connected configurations. The analysis has been performed for various sites in Europe using the HyDesign tool. Through sensitivity studies encompassing variations in hydrogen prices and other key parameters, we ascertain the optimal conditions for seeking a grid connection permit and enhancing revenue streams from electricity markets. The analysis reflects that the relevance of asking for a grid connection for an HPP owner with P2H depends upon multiple factors impacting NPV such as plant location, electricity market price, price of hydrogen, size and technology of electrolyzer; and investment cost associated with HPP, P2H unit and grid connection.