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Investigating the effect of renewable energy incentives and hydrogen storage on advantages of stakeholders in a microgrid

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  • Haghi, Ehsan
  • Raahemifar, Kaamran
  • Fowler, Michael

Abstract

The objective of this research is to investigate the effect and cost-efficiency of different renewable energy incentives and potential for hydrogen energy storage to the perceived viability of a microgrid project from the prospective of different stakeholders, i.e., government, energy hub operators and consumers in Ontario province, Canada. Hourly simulation of a microgrid in which wind and/or hydrogen are produced is used for the analysis. Results show that using underground seasonal storage leads to the government paying less incentive per kg of CO2 emission reduction as it lowers levelized cost of hydrogen and provides a higher carbon emission reduction potential. Results also show that for the same incentive policy, incentivizing hydrogen production with grid electricity or a blend of wind power and grid electricity and producing hydrogen using wind power with underground hydrogen storage are more cost-efficient options for government than incentivizing wind power production alone. Regarding the renewable energy incentives, a combination of capital grant and FIT is shown to be more cost-efficient incentive program for the government than FIT only programs. However, FIT programs are more effective for promoting renewable energy infrastructure.

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  • Haghi, Ehsan & Raahemifar, Kaamran & Fowler, Michael, 2018. "Investigating the effect of renewable energy incentives and hydrogen storage on advantages of stakeholders in a microgrid," Energy Policy, Elsevier, vol. 113(C), pages 206-222.
    • Handle: RePEc:eee:enepol:v:113:y:2018:i:c:p:206-222
    DOI: 10.1016/j.enpol.2017.10.045
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    9. Zhang, Tianyang & Pota, Himanshu & Chu, Chi-Cheng & Gadh, Rajit, 2018. "Real-time renewable energy incentive system for electric vehicles using prioritization and cryptocurrency," Applied Energy, Elsevier, vol. 226(C), pages 582-594.
    10. Sharma, Rakesh & Srinivasa Murthy, S. & Dutta, Pradip & Rao, Badri S., 2022. "Performance of solid state hydrogen storage assisted standalone polygeneration microgrids for various climatic zones of India," Energy, Elsevier, vol. 258(C).
    11. Jie Zhang & Majed Alharthi & Qaiser Abbas & Weiqing Li & Muhammad Mohsin & Khan Jamal & Farhad Taghizadeh-Hesary, 2020. "Reassessing the Environmental Kuznets Curve in Relation to Energy Efficiency and Economic Growth," Sustainability, MDPI, vol. 12(20), pages 1-21, October.
    12. Zheng, ShiYong & Liu, Kang & Li, Yuming & Li, Biqing & Usman, Ahmed, 2024. "How does hydrogen energy technology help to achieve carbon neutrality targets?," Renewable Energy, Elsevier, vol. 227(C).
    13. Tang, Ou & Rehme, Jakob & Cerin, Pontus & Huisingh, Donald, 2021. "Hydrogen production in the Swedish power sector: Considering operational volatilities and long-term uncertainties," Energy Policy, Elsevier, vol. 148(PB).
    14. Alasseri, Rajeev & Rao, T. Joji & Sreekanth, K.J., 2020. "Institution of incentive-based demand response programs and prospective policy assessments for a subsidized electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    15. Vu Ba Hau & Munir Husein & Il-Yop Chung & Dong-Jun Won & William Torre & Truong Nguyen, 2018. "Analyzing the Impact of Renewable Energy Incentives and Parameter Uncertainties on Financial Feasibility of a Campus Microgrid," Energies, MDPI, vol. 11(9), pages 1-24, September.
    16. Qureshi, Fazil & Yusuf, Mohammad & Kamyab, Hesam & Vo, Dai-Viet N. & Chelliapan, Shreeshivadasan & Joo, Sang-Woo & Vasseghian, Yasser, 2022. "Latest eco-friendly avenues on hydrogen production towards a circular bioeconomy: Currents challenges, innovative insights, and future perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    17. Long, Yong & Liu, Xia, 2024. "Optimal green investment strategy for grid-connected microgrid considering the impact of renewable energy source endowment and incentive policy," Energy, Elsevier, vol. 295(C).
    18. Schlund, David & Schulte, Simon & Sprenger, Tobias, 2021. "The who’s who of a hydrogen market ramp-up: A stakeholder analysis for Germany," EWI Working Papers 2021-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
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