Hydrogen strategy optimization for a sustainable electricity grid

Abstract

This master thesis aimed to develop an optimized operating strategy for an electricity grid incorporating hydrogen storage, while considering three key performance indicators: financial costs, reliability, and sustainability. The central research question guiding this study was: "How can the electricity demand be reliably met by a system combining solar power, conventional power supply, and hydrogen systems, optimized for sustainability, cost-efficiency, and reliability through adjustment of the operating strategy?"

The study quantified all key performance indicators in terms of costs, with sustainability measured by the price of carbon credits, providing a quantifiable measure of CO2 emissions. A discrete event model was utilized to simulate an electricity system on an hourly basis, integrating solar energy, a hydrogen system, and non-sustainable energy sources. The particle swarm optimization algorithm, enhanced with linear decay, was employed to identify the most optimal operating strategies within this model. Four distinct scenarios were formulated to analyze the optimal operating strategy under varying circumstances.
The findings revealed that when the price of hydrogen was significantly higher than that of conventional resources, the optimal strategy favored the avoidance of hydrogen electricity due to its high costs. Electrolysis costs and fuel cell expenses were identified as the primary cost drivers. Conversely, in scenarios where hydrogen was competitive with conventional resources, the optimal operating strategy incorporated a small portion of non-sustainable electricity while maximizing the use of hydrogen-based systems.

In conclusion, this master thesis addressed the research question by optimizing the operating strategy of an electricity grid integrating hydrogen technology. Presently, the financial advantages of non-sustainable electricity outweigh the sustainability benefits of hydrogen electricity. The study highlighted the need for substantial cost reductions in hydrogen system components and an increased price of carbon credits to realize a future scenario where hydrogen electricity competes with natural gas.