Hydrogen Storage for Wind Parks: A Real Options Evaluation for an Optimal Investment in More Flexibility

Kroniger, Daniel; Madlener, Reinhard

doi:10.2139/ssrn.2340107

Cited by 46 publications

(8 citation statements)

References 75 publications

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“…The average investment cost of each wind turbine with a 20‐year lifespan is €2.7281 × 10 6 , and the annual maintenance cost is €1.4036 × 10 4 /MW. The parameters of the hydrogen‐producing system and the fuel cells take the following values: c PEM = 1 × 10 6 €/MW; c FC = 4.6044 × 10 4 €/MW; c COM = 1.0976 × 10 5 €/MW; c STO = 48.8506 €/m 3 ; y 3 = 5; y 4 = 5; y 5 = 25; y 6 = 25; η PEM = 71%; η COM = 90%; η gte = 47%; δ 1 = δ 2 = δ 3 = δ 4 = 5%; δ 5 = δ 6 = 1%. Other parameters are as follows: L = 63.5 km; y 1 = 20; c L1 = 1276 €/km/MW; c L2 = 0.23 × 10 4 €/MW; y 2 = 12; F T = 405 × 10 4 €; T = 52560; andΔ t = 10 min.…”

Section: Resultsmentioning

confidence: 99%

“…High‐pressure gaseous hydrogen storage is adopted due to its wide use . The fuel cells will generate energy based on the need for smoothing and profitability via temporal arbitrage or by supplying a positive reserve . Because this research is in the planning stage, this paper only considers the requirement of smoothing to meet power quality based on wind resources without a day‐by‐day operation schedule in terms of a long time span.…”

Section: Scheme Of a Wind‐hydrogen Power System With Clustered Wind Fmentioning

confidence: 99%

“…The importance of hydrogen storage for accommodating the high penetration of renewable energy has been discussed previously . Many studies have described and analyzed the economic feasibility of hydrogen storage, with common topics including improving efficiency, reducing high investment costs, addressing uncertain profitability, and increasing storage. In addition, the capacity optimization of wind‐hydrogen systems has been studied on the electrolyzer and fuel cell .…”

Section: Introductionmentioning

confidence: 99%

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Optimizing unit capacities for a wind-hydrogen power system of clustered wind farms

Jiang

Bu-ying

Wang

2018

Int Trans Electr Energ Syst

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Summary In general, wind power output of clustering wind farms must be massively transmitted. The wind power in each wind farm is correlated, intermittent, fluctuant, and cannot be accommodated all the time, causing the intractable decision of economical transmission capacity of a project transmitting wind power to a power grid. Furthermore, the drastic fluctuation of clustered wind power results in enormous challenges regarding the safety of a power system. For these reasons, the concept of a wind‐hydrogen power system for clustered wind farms is proposed. Next, a multiobjective model for optimizing the capacities, including the transmission project, hydrogen‐producing system, and fuel cells, is constructed based on the joint distributed character of wind speed, which consists of maximizing social benefit and the qualified rate of smoothing clustering wind power fluctuations. Finally, a case is analyzed in detail, accounting for the wind volatility, wind curtailment probability, and the costs of both hydrogen production and the fuel cells.

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Section: Resultsmentioning

confidence: 99%

Section: Scheme Of a Wind‐hydrogen Power System With Clustered Wind Fmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Optimizing unit capacities for a wind-hydrogen power system of clustered wind farms

Jiang

Bu-ying

Wang

2018

Int Trans Electr Energ Syst

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“…The above literatures mainly studied on the operation and planning of the electricity and gas networks with the P2G device, and few literatures investigated the investment economy of P2G. Literature [15] is one of the few to analyze the investment economy of P2G. The electricity is converted into hydrogen via electrolyzers in the P2G system.…”

Section: Introductionmentioning

confidence: 99%

“…The real option theory applied in literature [15] has been applied in various aspects of investment in power system:…”

Section: Introductionmentioning

confidence: 99%

The Optimal Investment Strategy of P2G Based on Real Option Theory

2020

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This paper initially proposes a real options model for the investment of the Power-togas (P2G) plant based on uncertain operating cost which mainly refers to the price of electricity. Through the analysis of the uncertainty parameters affecting the operation of the P2G project, the mathematical model expressing the relations between the parameters of P2G operation cost, electricity price, sunk cost, and other parameters are established. The Brownian motion is utilized to describe the operation cost, based on which, the option value and the project value models of P2G are derived in detail. According to these two models, the optimal investment timing of the P2G device and the corresponding optimal investment capacity can be determined. The above models are verified by numerical simulation. In addition, the influence of the change of parameters on the investment timing and investment capacity in the real options model is studied. The results show that the volatility of electricity price has a greater impact on the option value of P2G project than that of other parameters. When there is a high operating cost uncertainty, waiting is a better option, and the investment can be performed when the operating cost falls to the cost with reference to the optimal investment timing. INDEX TERMS Power-togas , real option, investment opportunity, investment capacity, operation cost uncertainty.

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Energy storage system expansion planning in power systems: a review

Sheibani¹,

Yousefi²,

Latify³

et al. 2018

IET Renewable Power Generation

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In recent two decades, the power systems have confronted with considerable changes such as the power system restructuring, growth of distributed energy sources and renewable energy sources (RESs), and emergence of smart grid concept. One of the common challenges caused by these changes is flexibility necessity of energy resources. One of the best solutions to mitigate this challenge is energy storage systems (ESSs) utilisation. The main question is how to determine size, site, and type of ESSs to maximise their benefits. This study reviews the answers to this question according to the research studies. This study first classifies the studies related to ESS expansion planning into two main categories from the viewpoint of the power system operators and the investors. Next, the first main category is divided into three subcategories: ESS expansion planning in microgrids, distribution networks, and transmission networks. The second main category is classified into two subcategories: ESS expansion planning aim to smooth RESs output power and to maximise profit. In each subcategory the modelling approaches, solving methods, and the results are evaluated. Finally, based on the existing challenges, the future research directions of ESS expansion planning are outlined.

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Hydrogen Storage for Wind Parks: A Real Options Evaluation for an Optimal Investment in More Flexibility

Cited by 46 publications

References 75 publications

Optimizing unit capacities for a wind-hydrogen power system of clustered wind farms

Optimizing unit capacities for a wind-hydrogen power system of clustered wind farms

The Optimal Investment Strategy of P2G Based on Real Option Theory

Energy storage system expansion planning in power systems: a review

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