The effects of electricity tariffs on cost-minimal hydrogen supply chains and their impact on electricity prices and redispatch costs

Scheidt, Frederik vom; Qu, Jingyi; Staudt, Philipp; Mallapragada, Dharik S.; Weinhardt, Christof

doi:10.24251/hicss.2021.401

Cited by 8 publications

(6 citation statements)

References 20 publications

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“…This indicates that the cheaper electricity costs outweigh the higher transportation operating costs. This effect is stable across the three delivery states, in line with the preliminary findings by vom Scheidt et al (2021).…”

Section: Hydrogen Supply Chain Resultssupporting

confidence: 88%

“…In the following, we describe the details of the hydrogen supply chain model. It represents an enhanced version of the model in (vom Scheidt et al, 2021). Due to the temporal uncertainty in demand from end-use sectors the model assumes time-invariant hydrogen consumption.…”

Section: Hydrogen Supply Chain Modelmentioning

confidence: 99%

“…Next, we model the electricity system to calculate electricity prices and congestion management costs, following the approach introduced in vom Scheidt et al (2021).…”

Section: Electricity System Modelmentioning

confidence: 99%

“…Since hydrogen production from electrolysis uses large amounts of electricity, a future hydrogen sector will introduce new interdependencies with the electricity sector. While electricity prices influence the cost-minimal installation (vom Scheidt et al, 2021) and operation (Guerra et al, 2019) of electrolyzers, these electrolyzers in turn introduce new electricity demand into the bulk power system, influencing in the short term the usage of renewable energy (Ruhnau, 2020;Bødal et al, 2020), as well as congestion of power networks (vom Scheidt et al, 2021;Xiong et al, 2021), and in the long term the need for electricity generation and transmission capacity (Bødal et al, 2020). Most importantly, the effects of these interdependencies will be strong and will prevail for a long time, because electrolyzers are large-scale, stationary consumers with typical lifetimes of ten years and more (Schmidt et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…They note that nodal prices contain important information about "cost-effective energy consumption from a system perspective" and that investors in hydrogen infrastructure should consider the system perspective. This idea is expanded and implemented by vom Scheidt et al (2021). The authors link a hydrogen supply chain optimization model and a nodal electricity system dispatch model and observe their interdependence in an initial case study of hydrogenfueled trucks and passenger cars.…”

Section: Introductionmentioning

confidence: 99%

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Integrating hydrogen in single-price electricity systems: The effects of spatial economic signals

Scheidt

Staudt

et al. 2022

Energy Policy

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Hydrogen can contribute substantially to the reduction of carbon emissions in industry and transportation. However, the production of hydrogen through electrolysis creates interdependencies between hydrogen supply chains and electricity systems. Therefore, as governments worldwide are planning considerable financial subsidies and new regulation to promote hydrogen infrastructure investments in the next years, energy policy research is needed to guide such policies with holistic analyses. In this study, we link a electrolytic hydrogen supply chain model with an electricity system dispatch model. We use this methodology for a cross-sectoral case study of Germany in 2030. We find that hydrogen infrastructure investments and their effects on the electricity system are strongly influenced by electricity prices. Given current uniform zonal prices, hydrogen production increases congestion costs in the electricity grid by 11%. In contrast, passing spatially resolved electricity price signals leads to electrolyzers being placed at low-cost grid nodes and further away from consumption centers. This causes lower end-use costs for hydrogen. Moreover, congestion management costs decrease substantially, by 24% compared to the benchmark case without hydrogen. These savings could be transferred into according subsidies for hydrogen production. Thus, our study demonstrates the benefits of differentiating subsidies for hydrogen production based on spatial criteria.

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Section: Hydrogen Supply Chain Resultssupporting

confidence: 88%

Section: Hydrogen Supply Chain Modelmentioning

confidence: 99%

“…Next, we model the electricity system to calculate electricity prices and congestion management costs, following the approach introduced in vom Scheidt et al (2021).…”

Section: Electricity System Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Integrating hydrogen in single-price electricity systems: The effects of spatial economic signals

Scheidt

Staudt

et al. 2022

Energy Policy

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Engineering Energy Markets: The Past, the Present, and the Future

et al. 2021

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Since the beginning of the energy sector liberalization, the design of energy markets has become a prominent field of research. Markets nowadays facilitate efficient resource allocation in many fields of energy system operation, such as plant dispatch, control reserve provisioning, delimitation of related carbon emissions, grid congestion management, and, more recently, smart grid concepts and local energy trading. Therefore, good market designs play an important role in enabling the energy transition toward a more sustainable energy supply for all. In this chapter, we retrace how market engineering shaped the development of energy markets and how the research focus shifted from national wholesale markets to more decentralized and location-sensitive concepts.

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The value of TSO-DSO coordination in re-dispatch with flexible decentralized energy sources: Insights for Germany in 2030

Pearson

Wellnitz²,

Granado³

et al. 2022

Applied Energy

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The effects of electricity tariffs on cost-minimal hydrogen supply chains and their impact on electricity prices and redispatch costs

Cited by 8 publications

References 20 publications

Integrating hydrogen in single-price electricity systems: The effects of spatial economic signals

Integrating hydrogen in single-price electricity systems: The effects of spatial economic signals

Engineering Energy Markets: The Past, the Present, and the Future

The value of TSO-DSO coordination in re-dispatch with flexible decentralized energy sources: Insights for Germany in 2030

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