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Off-grid solar PV–wind power–battery–water electrolyzer plant: Simultaneous optimization of component capacities and system control

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  • Ibáñez-Rioja, Alejandro
  • Järvinen, Lauri
  • Puranen, Pietari
  • Kosonen, Antti
  • Ruuskanen, Vesa
  • Hynynen, Katja
  • Ahola, Jero
  • Kauranen, Pertti

Abstract

Green hydrogen production systems will play an important role in the energy transition from fossil-based fuels to zero-carbon technologies. This paper investigates a concept of an off-grid alkaline water electrolyzer plant integrated with solar photovoltaic (PV), wind power, and a battery energy storage system (BESS). The operation of the plant is simulated over 30years with 5min time resolution based on measured power generation data collected from a solar photovoltaic installation and a wind farm located in southeastern Finland. Levelized cost of hydrogen (LCOH) is calculated based on the capital expenditures (CAPEX), the operating expenses (OPEX), and the respective learning curves for each of the components. Component degradation and replacements during the operational lifetime are included in the model, and the capacity of the components and the system control are simultaneously optimized to obtain the minimum LCOH. A sensitivity analysis performed over different installation years and discount rates reveals that for the off-grid alkaline system, the implementation of a wind farm as the sole power supply is the most economical solution until the installation years 2035–2040. Solar PV and a BESS are found to increase the full-load hours of the electrolyzer and reduce the electricity curtailed in the off-grid plant to less than 8%. However, with the current component prices and the climate in the studied region, they are not economically beneficial. It is found that the cost of hydrogen can be reduced to 2 €/kg by the year 2030.

Suggested Citation

  • Ibáñez-Rioja, Alejandro & Järvinen, Lauri & Puranen, Pietari & Kosonen, Antti & Ruuskanen, Vesa & Hynynen, Katja & Ahola, Jero & Kauranen, Pertti, 2023. "Off-grid solar PV–wind power–battery–water electrolyzer plant: Simultaneous optimization of component capacities and system control," Applied Energy, Elsevier, vol. 345(C).
    • Handle: RePEc:eee:appene:v:345:y:2023:i:c:s0306261923006414
    DOI: 10.1016/j.apenergy.2023.121277
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    References listed on IDEAS

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    1. Steffen, Bjarne, 2020. "Estimating the cost of capital for renewable energy projects," Energy Economics, Elsevier, vol. 88(C).
    2. Piotr W. Saługa & Krzysztof Zamasz & Zdzisława Dacko-Pikiewicz & Katarzyna Szczepańska-Woszczyna & Marcin Malec, 2021. "Risk-Adjusted Discount Rate and Its Components for Onshore Wind Farms at the Feasibility Stage," Energies, MDPI, vol. 14(20), pages 1-12, October.
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    1. Sakas, Georgios & Ibáñez-Rioja, Alejandro & Pöyhönen, Santeri & Kosonen, Antti & Ruuskanen, Vesa & Kauranen, Pertti & Ahola, Jero, 2024. "Influence of shunt currents in industrial-scale alkaline water electrolyzer plants," Renewable Energy, Elsevier, vol. 225(C).

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