IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v329y2023ics0306261922014416.html
   My bibliography  Save this article

Analysis of multi-output hybrid energy systems interacting with the grid: Application of improved price-taker and price-maker approaches to nuclear-hydrogen systems

Author

Listed:
  • Frew, Bethany
  • Levie, Daniel
  • Richards, James
  • Desai, Jal
  • Ruth, Mark

Abstract

The growing recognition of the value of hydrogen as an energy intermediate in supporting future power systems with high shares of variable renewable energy has prompted many studies to quantify the economic potential of multi-output hybrid systems, which are one type of integrated energy systems (IES). Because of the complexity of modeling multiple sectors, these studies typically use simplified modeling approaches to capture the interactions between sectors. In this study, we explore the implications of alternative modeling approaches for nuclear-hydrogen IES focusing on a power system in the Midwest United States. We combine highly resolved capacity expansion and production cost modeling tools of the power system with a detailed hydrogen system optimization tool to determine the optimal electrolyzer and storage sizing and optimal operations of the nuclear-hydrogen hybrid resource across three future study years. We compare economic and operational outcomes across a spectrum of modeling approaches, including a non-hybridized base approach; a traditional price-taker approach that does not include the impact of hydrogen production on the electricity system; a power-system-focused price-maker approach that does not account for temporal hydrogen constraints; and two improved price-taker and price-maker approaches that each address the impact of revenue-optimal levels of electricity production on the resulting power system and temporal hydrogen constraints on the overall feasible solution. Results show how a traditional price-taker approach can overestimate the economic benefits of multi-output nuclear-hydrogen IES compared to our two improved approaches that estimate both hydrogen system constraints and power system interaction. We find that hydrogen output requirements and storage size limits are key drivers to overall operations and some economic outcomes. Under our assumed constant hydrogen output requirement, storage costs, test system, and modeling approaches, our results indicate that hybridization can provide a net benefit, but results are sensitive to the treatment of hydrogen revenues and electricity prices as impacted by the power system evolution.

Suggested Citation

  • Frew, Bethany & Levie, Daniel & Richards, James & Desai, Jal & Ruth, Mark, 2023. "Analysis of multi-output hybrid energy systems interacting with the grid: Application of improved price-taker and price-maker approaches to nuclear-hydrogen systems," Applied Energy, Elsevier, vol. 329(C).
  • Handle: RePEc:eee:appene:v:329:y:2023:i:c:s0306261922014416
    DOI: 10.1016/j.apenergy.2022.120184
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922014416
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2022.120184?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. Frew, Bethany & Brinkman, Greg & Denholm, Paul & Narwade, Vinayak & Stephen, Gord & Bloom, Aaron & Lau, Jessica, 2021. "Impact of operating reserve rules on electricity prices with high penetrations of renewable energy," Energy Policy, Elsevier, vol. 156(C).
    2. Gea-Bermúdez, Juan & Jensen, Ida Græsted & Münster, Marie & Koivisto, Matti & Kirkerud, Jon Gustav & Chen, Yi-kuang & Ravn, Hans, 2021. "The role of sector coupling in the green transition: A least-cost energy system development in Northern-central Europe towards 2050," Applied Energy, Elsevier, vol. 289(C).
    3. Guannan He & Dharik S. Mallapragada & Abhishek Bose & Clara F. Heuberger & Emre Genc{c}er, 2021. "Sector coupling via hydrogen to lower the cost of energy system decarbonization," Papers 2103.03442, arXiv.org.
    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. Morteza Nazari-Heris & Atefeh Tamaskani Esfehankalateh & Pouya Ifaei, 2023. "Hybrid Energy Systems for Buildings: A Techno-Economic-Enviro Systematic Review," Energies, MDPI, vol. 16(12), pages 1-15, June.
    2. Jalving, Jordan & Ghouse, Jaffer & Cortes, Nicole & Gao, Xian & Knueven, Bernard & Agi, Damian & Martin, Shawn & Chen, Xinhe & Guittet, Darice & Tumbalam-Gooty, Radhakrishna & Bianchi, Ludovico & Beat, 2023. "Beyond price taker: Conceptual design and optimization of integrated energy systems using machine learning market surrogates," Applied Energy, Elsevier, vol. 351(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. Jåstad, Eirik Ogner & Bolkesjø, Torjus Folsland, 2023. "Modelling emission and land-use impacts of altered bioenergy use in the future energy system," Energy, Elsevier, vol. 265(C).
    2. Saletti, Costanza & Morini, Mirko & Gambarotta, Agostino, 2022. "Smart management of integrated energy systems through co-optimization with long and short horizons," Energy, Elsevier, vol. 250(C).
    3. Jerez Monsalves, Juan & Bergaentzlé, Claire & Keles, Dogan, 2023. "Impacts of flexible-cooling and waste-heat recovery from data centres on energy systems: A Danish case study," Energy, Elsevier, vol. 281(C).
    4. Kim, Ju-Hee & Kim, Hee-Hoon & Yoo, Seung-Hoon, 2022. "Social acceptance toward constructing a combined heat and power plant near people's dwellings in South Korea," Energy, Elsevier, vol. 244(PB).
    5. Wooyoung Jeon & Jungyoun Mo, 2023. "Estimating the Operating Reserve Demand Curve for Efficient Adoption of Renewable Sources in Korea," Energies, MDPI, vol. 16(3), pages 1-12, February.
    6. Mustapha D. Ibrahim & Fatima A. S. Binofai & Maha O. A. Mohamad, 2022. "Transition to Low-Carbon Hydrogen Energy System in the UAE: Sector Efficiency and Hydrogen Energy Production Efficiency Analysis," Energies, MDPI, vol. 15(18), pages 1-19, September.
    7. Kristian Balzer & Joaquín Lazo & David Watts, 2023. "Economic Model of Ancillary Services in Real Time for Frequency Control," Energies, MDPI, vol. 16(17), pages 1-24, September.
    8. Frew, Bethany & Bashar Anwar, Muhammad & Dalvi, Sourabh & Brooks, Adria, 2023. "The interaction of wholesale electricity market structures under futures with decarbonization policy goals: A complexity conundrum," Applied Energy, Elsevier, vol. 339(C).
    9. Ruixue Liu & Guannan He & Xizhe Wang & Dharik Mallapragada & Hongbo Zhao & Yang Shao-Horn & Benben Jiang, 2024. "A cross-scale framework for evaluating flexibility values of battery and fuel cell electric vehicles," Nature Communications, Nature, vol. 15(1), pages 1-14, December.
    10. Prakash, Abhijith & Bruce, Anna & MacGill, Iain, 2022. "Insights on designing effective and efficient frequency control arrangements from the Australian National Electricity Market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    11. Borge-Diez, David & Icaza, Daniel & Trujillo-Cueva, Diego Francisco & Açıkkalp, Emin, 2022. "Renewable energy driven heat pumps decarbonization potential in existing residential buildings: Roadmap and case study of Spain," Energy, Elsevier, vol. 247(C).
    12. Jorquera-Copier, Javier & Lorca, Álvaro & Sauma, Enzo & Lorenczik, Stefan & Negrete-Pincetic, Matías, 2024. "Impacts of different hydrogen demand levels and climate policy scenarios on the Chilean integrated hydrogen–electricity network," Energy Policy, Elsevier, vol. 184(C).
    13. Giuseppe Aiello & Salvatore Quaranta & Rosalinda Inguanta & Antonella Certa & Mario Venticinque, 2024. "A Multi-Criteria Decision-Making Framework for Zero Emission Vehicle Fleet Renewal Considering Lifecycle and Scenario Uncertainty," Energies, MDPI, vol. 17(6), pages 1-19, March.
    14. Osorio-Aravena, Juan Carlos & Aghahosseini, Arman & Bogdanov, Dmitrii & Caldera, Upeksha & Ghorbani, Narges & Mensah, Theophilus Nii Odai & Haas, Jannik & Muñoz-Cerón, Emilio & Breyer, Christian, 2023. "Synergies of electrical and sectoral integration: Analysing geographical multi-node scenarios with sector coupling variations for a transition towards a fully renewables-based energy system," Energy, Elsevier, vol. 279(C).
    15. Sai, Wei & Pan, Zehua & Liu, Siyu & Jiao, Zhenjun & Zhong, Zheng & Miao, Bin & Chan, Siew Hwa, 2023. "Event-driven forecasting of wholesale electricity price and frequency regulation price using machine learning algorithms," Applied Energy, Elsevier, vol. 352(C).
    16. Rosendal, Mathias Berg & Münster, Marie & Bramstoft, Rasmus, 2024. "Renewable fuel production and the impact of hydrogen infrastructure — A case study of the Nordics," Energy, Elsevier, vol. 297(C).
    17. Pablo E. Carvajal & Asami Miketa & Nadeem Goussous & Pauline Fulcheri, 2022. "Best Practice in Government Use and Development of Long-Term Energy Transition Scenarios," Energies, MDPI, vol. 15(6), pages 1-21, March.
    18. Hernández, José L. & de Miguel, Ignacio & Vélez, Fredy & Vasallo, Ali, 2024. "Challenges and opportunities in European smart buildings energy management: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).
    19. Guerra, K. & Gutiérrez-Alvarez, R. & Guerra, Omar J. & Haro, P., 2023. "Opportunities for low-carbon generation and storage technologies to decarbonise the future power system," Applied Energy, Elsevier, vol. 336(C).
    20. Maulén, Lucas & Castro, Margarita & Lorca, Álvaro & Negrete-Pincetic, Matías, 2023. "Optimization-based expansion planning for power and hydrogen systems with feedback from a unit commitment model," Applied Energy, Elsevier, vol. 343(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:329:y:2023:i:c:s0306261922014416. 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.