IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v300y2021ics0306261921007261.html
   My bibliography  Save this article

Techno-economic analysis of balancing California’s power system on a seasonal basis: Hydrogen vs. lithium-ion batteries

Author

Listed:
  • Hernandez, Drake D.
  • Gençer, Emre

Abstract

Non-emitting variable renewable energy (VRE) resources are needed on the power grid if the United States is to “deeply decarbonize” the power sector. The intermittent nature of these resources makes them difficult to integrate into the power system. Existing energy storage technologies, such as lithium-ion (LI) batteries, could be used to aid the integration of these resources, but these technologies are sized to produce power for hours at a time before needing to be charged again. While these energy storage technologies could address daily imbalances between supply and demand for electric power, they cannot address the seasonal nature of power production of VREs. This paper details a methodology to estimate the levelized cost of energy (LCOE) of meeting this seasonal imbalance with either a hydrogen-fired gas turbine (HFGT) or lithium-ion battery system (LI) as a measure of economic efficiency of the technologies. Applying our model, we find the average LCOE associated with meeting this seasonal imbalance is $2400/MWh using a HFGT fueled with green hydrogen and $3000/MWh using a LI. If we allow the model to operate the HFGT with blue hydrogen the average LCOE decreases to $1560/MWh. However, we find the power prices required to justify investment in an HFGT to replace a natural gas-fired gas turbine are considerably higher than those seen in the market today.

Suggested Citation

  • Hernandez, Drake D. & Gençer, Emre, 2021. "Techno-economic analysis of balancing California’s power system on a seasonal basis: Hydrogen vs. lithium-ion batteries," Applied Energy, Elsevier, vol. 300(C).
    • Handle: RePEc:eee:appene:v:300:y:2021:i:c:s0306261921007261
    DOI: 10.1016/j.apenergy.2021.117314
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261921007261
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2021.117314?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Xu, Jiuping & Wang, Fengjuan & Lv, Chengwei & Huang, Qian & Xie, Heping, 2018. "Economic-environmental equilibrium based optimal scheduling strategy towards wind-solar-thermal power generation system under limited resources," Applied Energy, Elsevier, vol. 231(C), pages 355-371.
    2. Reuß, M. & Grube, T. & Robinius, M. & Preuster, P. & Wasserscheid, P. & Stolten, D., 2017. "Seasonal storage and alternative carriers: A flexible hydrogen supply chain model," Applied Energy, Elsevier, vol. 200(C), pages 290-302.
    3. Foley, A. & Díaz Lobera, I., 2013. "Impacts of compressed air energy storage plant on an electricity market with a large renewable energy portfolio," Energy, Elsevier, vol. 57(C), pages 85-94.
    4. Mileva, Ana & Johnston, Josiah & Nelson, James H. & Kammen, Daniel M., 2016. "Power system balancing for deep decarbonization of the electricity sector," Applied Energy, Elsevier, vol. 162(C), pages 1001-1009.
    5. Chang, Martin K. & Eichman, Joshua D. & Mueller, Fabian & Samuelsen, Scott, 2013. "Buffering intermittent renewable power with hydroelectric generation: A case study in California," Applied Energy, Elsevier, vol. 112(C), pages 1-11.
    6. Sinsel, Simon R. & Riemke, Rhea L. & Hoffmann, Volker H., 2020. "Challenges and solution technologies for the integration of variable renewable energy sources—a review," Renewable Energy, Elsevier, vol. 145(C), pages 2271-2285.
    7. Gençer, Emre & Torkamani, Sarah & Miller, Ian & Wu, Tony Wenzhao & O'Sullivan, Francis, 2020. "Sustainable energy system analysis modeling environment: Analyzing life cycle emissions of the energy transition," Applied Energy, Elsevier, vol. 277(C).
    8. Gautam Gowrisankaran & Stanley S. Reynolds & Mario Samano, 2016. "Intermittency and the Value of Renewable Energy," Journal of Political Economy, University of Chicago Press, vol. 124(4), pages 1187-1234.
    9. Gunnar Luderer & Michaja Pehl & Anders Arvesen & Thomas Gibon & Benjamin L. Bodirsky & Harmen Sytze de Boer & Oliver Fricko & Mohamad Hejazi & Florian Humpenöder & Gokul Iyer & Silvana Mima & Ioanna M, 2019. "Environmental co-benefits and adverse side-effects of alternative power sector decarbonization strategies," Nature Communications, Nature, vol. 10(1), pages 1-13, December.
    10. Ditaranto, Mario & Heggset, Tarjei & Berstad, David, 2020. "Concept of hydrogen fired gas turbine cycle with exhaust gas recirculation: Assessment of process performance," Energy, Elsevier, vol. 192(C).
    11. Paul L Joskow, 2019. "Challenges for wholesale electricity markets with intermittent renewable generation at scale: the US experience," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 35(2), pages 291-331.
    12. Ferreira, Helder Lopes & Garde, Raquel & Fulli, Gianluca & Kling, Wil & Lopes, Joao Pecas, 2013. "Characterisation of electrical energy storage technologies," Energy, Elsevier, vol. 53(C), pages 288-298.
    13. Gunnar Luderer & Michaja Pehl & Anders Arvesen & Thomas Gibon & Benjamin L Bodirsky & Harmen Sytze de Boer & Oliver Fricko & Mohamad Hejazi & Florian Humpenöder & Gokul Iyer & Silvana Mima & Ioanna Mo, 2019. "Environmental co-benefits and adverse side-effects of alternative power sector decarbonization strategies," Post-Print hal-02380468, HAL.
    14. Gabrielli, Paolo & Poluzzi, Alessandro & Kramer, Gert Jan & Spiers, Christopher & Mazzotti, Marco & Gazzani, Matteo, 2020. "Seasonal energy storage for zero-emissions multi-energy systems via underground hydrogen storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sánchez, Antonio & Blanco, Elena C. & Martín, Mariano, 2024. "Comparative assessment of methanol and ammonia: Green fuels vs. hydrogen carriers in fuel cell power generation," Applied Energy, Elsevier, vol. 374(C).
    2. Song, Siming & Liu, Pei & Li, Zheng, 2022. "Low carbon transition of China's electric and heating sector considering reliability: A modelling and optimization approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    3. Shen, Xiaojun & Li, Xingyi & Yuan, Jiahai & Jin, Yu, 2022. "A hydrogen-based zero-carbon microgrid demonstration in renewable-rich remote areas: System design and economic feasibility," Applied Energy, Elsevier, vol. 326(C).
    4. Ahang, Mohammadreza & Granado, Pedro Crespo del & Tomasgard, Asgeir, 2025. "Investments in green hydrogen as a flexibility source for the European power system by 2050: Does it pay off?," Applied Energy, Elsevier, vol. 378(PA).
    5. Shi, Mengshu & Huang, Yuansheng, 2022. "Research on investment planning of power-hydrogen system considering the multi-stakeholder benefit," Renewable Energy, Elsevier, vol. 199(C), pages 1408-1423.
    6. Dillman, K.J. & Heinonen, J., 2022. "A ‘just’ hydrogen economy: A normative energy justice assessment of the hydrogen economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    7. Calise, Francesco & Cappiello, Francesco Liberato & Cimmino, Luca & Dentice d’Accadia, Massimo & Vicidomini, Maria, 2023. "Renewable smart energy network: A thermoeconomic comparison between conventional lithium-ion batteries and reversible solid oxide fuel cells," Renewable Energy, Elsevier, vol. 214(C), pages 74-95.
    8. Calise, F. & Cappiello, F.L. & Cimmino, L. & Vicidomini, M., 2022. "Dynamic simulation modelling of reversible solid oxide fuel cells for energy storage purpose," Energy, Elsevier, vol. 260(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julia K. Szinai & David Yates & Pedro A. Sánchez-Pérez & Martin Staadecker & Daniel M. Kammen & Andrew D. Jones & Patricia Hidalgo-Gonzalez, 2024. "Climate change and its influence on water systems increases the cost of electricity system decarbonization," Nature Communications, Nature, vol. 15(1), pages 1-14, December.
    2. Hu, Xueyue & Wang, Chunying & Elshkaki, Ayman, 2024. "Material-energy Nexus: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    3. Liu, Jin-Long & Wang, Jian-Hua, 2015. "Thermodynamic analysis of a novel tri-generation system based on compressed air energy storage and pneumatic motor," Energy, Elsevier, vol. 91(C), pages 420-429.
    4. Pashchenko, Dmitry, 2023. "Hydrogen-rich gas as a fuel for the gas turbines: A pathway to lower CO2 emission," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    5. Tobias Junne & Sonja Simon & Jens Buchgeister & Maximilian Saiger & Manuel Baumann & Martina Haase & Christina Wulf & Tobias Naegler, 2020. "Environmental Sustainability Assessment of Multi-Sectoral Energy Transformation Pathways: Methodological Approach and Case Study for Germany," Sustainability, MDPI, vol. 12(19), pages 1-28, October.
    6. Bistline, John E.T. & Young, David T., 2020. "Emissions impacts of future battery storage deployment on regional power systems," Applied Energy, Elsevier, vol. 264(C).
    7. Tafarte, Philip & Lehmann, Paul, 2023. "Quantifying trade-offs for the spatial allocation of onshore wind generation capacity – A case study for Germany," Ecological Economics, Elsevier, vol. 209(C).
    8. Porcelli, Roberto & Gibon, Thomas & Marazza, Diego & Righi, Serena & Rugani, Benedetto, 2023. "Prospective environmental impact assessment and simulation applied to an emerging biowaste-based energy technology in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 176(C).
    9. Paul Wolfram & Qingshi Tu & Niko Heeren & Stefan Pauliuk & Edgar G. Hertwich, 2021. "Material efficiency and climate change mitigation of passenger vehicles," Journal of Industrial Ecology, Yale University, vol. 25(2), pages 494-510, April.
    10. Cárdenas, Bruno & Ibanez, Roderaid & Rouse, James & Swinfen-Styles, Lawrie & Garvey, Seamus, 2023. "The effect of a nuclear baseload in a zero-carbon electricity system: An analysis for the UK," Renewable Energy, Elsevier, vol. 205(C), pages 256-272.
    11. Chong, Cheng Tung & Fan, Yee Van & Lee, Chew Tin & Klemeš, Jiří Jaromír, 2022. "Post COVID-19 ENERGY sustainability and carbon emissions neutrality," Energy, Elsevier, vol. 241(C).
    12. Xu, Jiuping & Liu, Tingting, 2020. "Technological paradigm-based approaches towards challenges and policy shifts for sustainable wind energy development," Energy Policy, Elsevier, vol. 142(C).
    13. Pommeret, Aude & Ricci, Francesco & Schubert, Katheline, 2022. "Critical raw materials for the energy transition," European Economic Review, Elsevier, vol. 141(C).
    14. Gardumi, F. & Keppo, I. & Howells, M. & Pye, S. & Avgerinopoulos, G. & Lekavičius, V. & Galinis, A. & Martišauskas, L. & Fahl, U. & Korkmaz, P. & Schmid, D. & Montenegro, R. Cunha & Syri, S. & Hast, A, 2022. "Carrying out a multi-model integrated assessment of European energy transition pathways: Challenges and benefits," Energy, Elsevier, vol. 258(C).
    15. Martin, Nick & Zinck Thellufsen, Jakob & Chang, Miguel & Talens-Peiró, Laura & Madrid-López, Cristina, 2024. "The many faces of heating transitions. Deeper understandings of future systems in Sweden and beyond," Energy, Elsevier, vol. 290(C).
    16. Mantas Svazas & Yuriy Bilan & Valentinas Navickas & Małgorzata Okręglicka, 2023. "Energy Transformation in Municipal Areas—Key Datasets and Their Influence on Process Evaluation," Energies, MDPI, vol. 16(17), pages 1-20, August.
    17. Alpizar, Francisco & Carlsson, Fredrik & Lanza, Gracia, 2024. "On the perils of environmentally friendly alternatives," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    18. Sacchi, R. & Terlouw, T. & Siala, K. & Dirnaichner, A. & Bauer, C. & Cox, B. & Mutel, C. & Daioglou, V. & Luderer, G., 2022. "PRospective EnvironMental Impact asSEment (premise): A streamlined approach to producing databases for prospective life cycle assessment using integrated assessment models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    19. Ge, Yongkai & Ma, Yue & Wang, Qingrui & Yang, Qing & Xing, Lu & Ba, Shusong, 2023. "Techno-economic-environmental assessment and performance comparison of a building distributed multi-energy system under various operation strategies," Renewable Energy, Elsevier, vol. 204(C), pages 685-696.
    20. Grubert, E. & Zacarias, M., 2022. "Paradigm shifts for environmental assessment of decarbonizing energy systems: Emerging dominance of embodied impacts and design-oriented decision support needs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:300:y:2021:i:c:s0306261921007261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.