Profit analysis of hydrogen energy storage

Is high-cost hydrogen storage more valuable than low- cost hydrogen storage?

We find that characteristics of high-cost hydrogen storage can be more valuable than low-cost hydrogen storage. Additionally, we show that modifying the freedom of storage sizing and component interactions can make the energy system 10% cheaper and impact the value of technologies.

Can a hydrogen storage system be scaled and combined?

For instance, electrolysers (MW), steel tanks (MWh) and fuel cells (MW) composing hydrogen storage systems can be freely scaled and combined. Moreover, in a H2 -hub operation, two different electrolysers could feed the same H2 -storage tank. Second, energy storage system components–for instance, hydrogen–are not required to be at one location.

Are high LCoS hydrogen storage systems worth it?

Section 4.2 and 4.3 show that a high levelised cost of storage (LCOS) hydrogen storage can be equally or even more valuable than a low LCOS one from the system perspective. We draw this conclusion by observing the deployment of low and high LCOS hydrogen storage systems in a least-cost power system investment planning model.

What is the cost analysis of energy storage?

We categorise the cost analysis of energy storage into two groups based on the methodology used: while one solely estimates the cost of storage components or systems, the other additionally considers the charging cost, such as the levelised cost approaches.

Can hydrogen storage reduce the market potential of batteries?

In the second scenario, when all hydrogen storage components, and the battery inverter to capacity ratio, are independently scalable, one can observe a noteworthy reduction of the market potential of battery components. This means that flexible scaling of storage technologies can reduce the viable market for batteries.

Do energy storage systems provide value to the energy system?

In general, energy storage systems can provide value to the energy system by reducing its total system cost; and reducing risk for any investment and operation. This paper discusses total system cost reduction in an idealised model without considering risks.