IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v330y2023ipbs0306261922015720.html
   My bibliography  Save this article

Low-cost hydrogen in the future European electricity system – Enabled by flexibility in time and space

Author

Listed:
  • Walter, Viktor
  • Göransson, Lisa
  • Taljegard, Maria
  • Öberg, Simon
  • Odenberger, Mikael

Abstract

The present study investigates four factors that govern the ability to supply hydrogen at a low cost in Europe: the scale of the hydrogen demand; the possibility to invest in large-scale hydrogen storage; process flexibility in hydrogen-consuming industries; and the geographical areas in which hydrogen demand arises. The influence of the hydrogen demand on the future European zero-emission electricity system is investigated by applying the cost-minimising electricity system investment model eNODE to hydrogen demand levels in the range of 0–2,500 TWhH2. It is found that the majority of the future European hydrogen demand can be cost-effectively satisfied with VRE, assuming that the expansion of wind and solar power is not hindered by a lack of social acceptance, at a cost of around 60–70 EUR/MWhH2 (2.0–2.3 EUR/kgH2). The cost of hydrogen in Europe can be reduced by around 10 EUR/MWhH2 if the hydrogen consumption is positioned strategically in regions with good conditions for wind and solar power and a low electricity demand. The cost savings potential that can be obtained from full temporal flexibility of hydrogen consumption is 3-fold higher than that linked to strategic localisation of the hydrogen consumption. The cost of hydrogen per kg increases, and the value of flexibility diminishes, as the size of the hydrogen demand increases relative to the traditional demand for electricity and the available VRE resources. Low-cost hydrogen is, thus, achieved by implementing efficiency and flexibility measures for hydrogen consumers, as well as increasing acceptance of VRE.

Suggested Citation

  • Walter, Viktor & Göransson, Lisa & Taljegard, Maria & Öberg, Simon & Odenberger, Mikael, 2023. "Low-cost hydrogen in the future European electricity system – Enabled by flexibility in time and space," Applied Energy, Elsevier, vol. 330(PB).
    • Handle: RePEc:eee:appene:v:330:y:2023:i:pb:s0306261922015720
    DOI: 10.1016/j.apenergy.2022.120315
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922015720
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.120315?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. Göransson, Lisa & Goop, Joel & Odenberger, Mikael & Johnsson, Filip, 2017. "Impact of thermal plant cycling on the cost-optimal composition of a regional electricity generation system," Applied Energy, Elsevier, vol. 197(C), pages 230-240.
    2. Lisa Göransson & Mariliis Lehtveer & Emil Nyholm & Maria Taljegard & Viktor Walter, 2019. "The Benefit of Collaboration in the North European Electricity System Transition—System and Sector Perspectives," Energies, MDPI, vol. 12(24), pages 1-23, December.
    3. Walter, Viktor & Göransson, Lisa, 2022. "Trade as a variation management strategy for wind and solar power integration," Energy, Elsevier, vol. 238(PA).
    4. Kan, Xiaoming & Hedenus, Fredrik & Reichenberg, Lina, 2020. "The cost of a future low-carbon electricity system without nuclear power – the case of Sweden," Energy, Elsevier, vol. 195(C).
    5. Lux, Benjamin & Pfluger, Benjamin, 2020. "A supply curve of electricity-based hydrogen in a decarbonized European energy system in 2050," Applied Energy, Elsevier, vol. 269(C).
    6. Toktarova, Alla & Walter, Viktor & Göransson, Lisa & Johnsson, Filip, 2022. "Interaction between electrified steel production and the north European electricity system," Applied Energy, Elsevier, vol. 310(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. Piotr F. Borowski & Barbara Karlikowska, 2023. "Clean Hydrogen Is a Challenge for Enterprises in the Era of Low-Emission and Zero-Emission Economy," Energies, MDPI, vol. 16(3), pages 1-15, January.
    2. Mohammad Mehdi Amiri & Mohammad Taghi Ameli & Goran Strbac & Danny Pudjianto & Hossein Ameli, 2024. "The Role of Flexibility in the Integrated Operation of Low-Carbon Gas and Electricity Systems: A Review," Energies, MDPI, vol. 17(9), pages 1-26, May.

    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. Toktarova, Alla & Walter, Viktor & Göransson, Lisa & Johnsson, Filip, 2022. "Interaction between electrified steel production and the north European electricity system," Applied Energy, Elsevier, vol. 310(C).
    2. Walter, Viktor & Göransson, Lisa, 2022. "Trade as a variation management strategy for wind and solar power integration," Energy, Elsevier, vol. 238(PA).
    3. Alla Toktarova & Lisa Göransson & Filip Johnsson, 2021. "Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition," Energies, MDPI, vol. 14(24), pages 1-21, December.
    4. Lisa Göransson, 2023. "Balancing Electricity Supply and Demand in a Carbon-Neutral Northern Europe," Energies, MDPI, vol. 16(8), pages 1-27, April.
    5. Boldrini, Annika & Koolen, Derck & Crijns-Graus, Wina & van den Broek, Machteld, 2024. "The impact of decarbonising the iron and steel industry on European power and hydrogen systems," Applied Energy, Elsevier, vol. 361(C).
    6. Beiron, Johanna & Montañés, Rubén M. & Normann, Fredrik & Johnsson, Filip, 2020. "Flexible operation of a combined cycle cogeneration plant – A techno-economic assessment," Applied Energy, Elsevier, vol. 278(C).
    7. Maria Taljegard & Lisa Göransson & Mikael Odenberger & Filip Johnsson, 2021. "To Represent Electric Vehicles in Electricity Systems Modelling—Aggregated Vehicle Representation vs. Individual Driving Profiles," Energies, MDPI, vol. 14(3), pages 1-25, January.
    8. Eid Gul & Giorgio Baldinelli & Pietro Bartocci, 2022. "Energy Transition: Renewable Energy-Based Combined Heat and Power Optimization Model for Distributed Communities," Energies, MDPI, vol. 15(18), pages 1-18, September.
    9. Lopez, Gabriel & Galimova, Tansu & Fasihi, Mahdi & Bogdanov, Dmitrii & Breyer, Christian, 2023. "Towards defossilised steel: Supply chain options for a green European steel industry," Energy, Elsevier, vol. 273(C).
    10. Christoph Sejkora & Johannes Lindorfer & Lisa Kühberger & Thomas Kienberger, 2021. "Interlinking the Renewable Electricity and Gas Sectors: A Techno-Economic Case Study for Austria," Energies, MDPI, vol. 14(19), pages 1-38, October.
    11. Shirizadeh, Behrang & Quirion, Philippe, 2021. "Low-carbon options for the French power sector: What role for renewables, nuclear energy and carbon capture and storage?," Energy Economics, Elsevier, vol. 95(C).
    12. Thellufsen, Jakob Zinck & Lund, Henrik & Mathiesen, Brian Vad & Østergaard, Poul Alberg & Sorknæs, Peter & Nielsen, Steffen & Madsen, Poul Thøis & Andresen, Gorm Bruun, 2024. "Cost and system effects of nuclear power in carbon-neutral energy systems," Applied Energy, Elsevier, vol. 371(C).
    13. Oluwatoyin J. Gbadeyan & Joseph Muthivhi & Linda Z. Linganiso & Nirmala Deenadayalu, 2024. "Decoupling Economic Growth from Carbon Emissions: A Transition toward Low-Carbon Energy Systems—A Critical Review," Clean Technol., MDPI, vol. 6(3), pages 1-38, August.
    14. Rodica Loisel & Lionel Lemiale & Silvana Mima & Adrien Bidaud, 2022. "Strategies for short-term intermittency in long-term prospective scenarios in the French power system," Post-Print hal-04568072, HAL.
    15. Pietzcker, Robert C. & Osorio, Sebastian & Rodrigues, Renato, 2021. "Tightening EU ETS targets in line with the European Green Deal: Impacts on the decarbonization of the EU power sector," Applied Energy, Elsevier, vol. 293(C).
    16. 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.
    17. Loisel, Rodica & Lemiale, Lionel & Mima, Silvana & Bidaud, Adrien, 2022. "Strategies for short-term intermittency in long-term prospective scenarios in the French power system," Energy Policy, Elsevier, vol. 169(C).
    18. Klaus Eisenack & Mathias Mier, 2019. "Peak-load pricing with different types of dispatchability," Journal of Regulatory Economics, Springer, vol. 56(2), pages 105-124, December.
    19. Hu, Hang & Yang, Lingzhi & Yang, Sheng & Zou, Yuchi & Wang, Shuai & Chen, Feng & Guo, Yufeng, 2024. "Development and assessment of an integrated wind energy system for green steelmaking based on electric arc furnace route," Energy, Elsevier, vol. 302(C).
    20. Alexandra Hüttel & Judith Lehner, 2024. "Revisiting Investment Costs for Green Steel: Capital Expenditures, Firm Level Impacts, and Policy Implications," Discussion Papers of DIW Berlin 2082, DIW Berlin, German Institute for Economic Research.

    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:330:y:2023:i:pb:s0306261922015720. 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.