How Would Structural Change in Electricity and Hydrogen End Use Impact Low-Carbon Transition of an Energy System? A Case Study of China

Abstract

Driven by global targets to reduce greenhouse gas emissions, energy systems are expected to undergo fundamental changes. In light of carbon neutrality policies, China is expected to significantly increase the proportion of hydrogen and electricity in its energy system in the future. Nevertheless, the future trajectory remains shrouded in uncertainty. To explore the potential ramifications of varying growth scenarios pertaining to hydrogen and electricity on the energy landscape, this study employs a meticulously designed bottom-up model. Through comprehensive scenario calculations, the research aims to unravel the implications of such expansions and provide a nuanced analysis of their effects on the energy system. Results show that with an increase in electrification rates, cumulative carbon dioxide emissions over a certain planning horizon could be reduced, at the price of increased unit reduction costs. By increasing the share of end-use electricity and hydrogen from 71% to 80% in 2060, the unit carbon reduction cost will rise by 17%. Increasing shares of hydrogen could shorten the carbon emission peak time by approximately five years, but it also brings an increase in peak shaving demand.