IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04297212.html
   My bibliography  Save this paper

Unraveling the Competition: Power-to-Gas vs. Energy Storage, Insights from a Stochastic Dynamic Programming Approach

Author

Listed:
  • Ange Blanchard

    (Chaire économie du climat - Chaire économie du climat, LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay)

  • Camille Megy

    (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay)

Abstract

This study investigates the interplay between Power-to-Gas (PtG) and energy storage within an integrated electricity and hydrogen system. A Multistage Stochastic Dynamic Programming (MSDP) model, solved using the Stochastic Dual Dynamic Programming (SDDP) algorithm, captures the unpredictability of Variable Renewable Energy (VRE) sources in a German energy system forecast for 2035. Across four scenarios of installed PtG capacities, we scrutinize PtG's contributions to the energy system and how its deployment affects the operation and profitability of energy storage technologies. Our findings reveal PtG's efficacy in lowering electricity curtailment without markedly influencing electricity storage operations. PtG fosters low-carbon hydrogen production, diminishing reliance on hydrogen imports and fortifying hydrogen storage viability. However, this study underscores a critical aspect: the profitability of PtG experiences a significant downturn with expanding capacity, to the extent that it could threaten its overall viability. Public support may be imperative to ensure PtG's widespread adoption, addressing the economic challenges associated with its scalability.

Suggested Citation

  • Ange Blanchard & Camille Megy, 2023. "Unraveling the Competition: Power-to-Gas vs. Energy Storage, Insights from a Stochastic Dynamic Programming Approach," Post-Print hal-04297212, HAL.
    • Handle: RePEc:hal:journl:hal-04297212
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:hal:journl:hal-04297212. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.