Risk-Aware Contracting Strategies for Electrolytic Hydrogen Projects Facing Grid Congestion

None, None; None, None; None, None; None, None; None, None

Risk-Aware Contracting Strategies for Electrolytic Hydrogen Projects Facing Grid Congestion

Conference Paper (2025)

Author(s)

T. Swarts (Eindhoven University of Technology)

W. van Den Akker (Eindhoven University of Technology)

J. Morren (Eindhoven University of Technology)

A. van Voorden (TU Delft - Electrical Sustainable Energy)

H. Slootweg (Eindhoven University of Technology)

Department

Electrical Sustainable Energy

DOI related publication

https://doi.org/10.1109/ISGTEurope64741.2025.11305270

Stochastic optimization Grid connection Congestion management Electrolyzers Bilateral contracts

To reference this document use:

https://resolver.tudelft.nl/uuid:15fc23f4-86c2-4427-9863-3fe28d1d9e02

More Info

expand_more

Publication Year

2025

Language

English

Department

Electrical Sustainable Energy

Bibliographical Note

Green Open Access added to TU Delft Institutional Repository as part of the Taverne amendment. More information about this copyright law amendment can be found at https://www.openaccess.nl. Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.@en

Publisher

IEEE

ISBN (print)

979-8-3315-2504-0

ISBN (electronic)

979-8-3315-2503-3

Reuse Rights

Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.

Abstract

Electrolytic hydrogen is expected to play a key role in decarbonizing energy systems in Europe. However, such projects face uncertain grid access due to congestion and struggle with financial viability. To address growing grid congestion in the Netherlands, different types of non-firm connection and transport agreements (CTAs) and capacity restriction contracts (CRCs) were introduced, enabling client curtailment in exchange for tariff discounts or per-MW compensation. This paper investigates investment and contracting decisions for electrolyzer projects under these novel contracts using a two-stage risk-aware stochastic optimization model that captures uncertainty in electricity prices and grid access. Results show that risk-averse clients prefer non-firm CTA-85 contracts, which balance tariff discounts with curtailment compensation, while risk-neutral clients favor standard non-firm CTAs. The new contract types can lower the break-even hydrogen price by approximately €0.50/kg compared to firm contracts outside congested areas, and thus improve the business case for electrolytic hydrogen in the Netherlands.

Files

Risk-Aware_Contracting_Strateg... (pdf)

(pdf | 1.32 Mb)

License info not available

File under embargo until 30-06-2026