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Decarbonizing the Industry Sector and its Effect on Electricity Transmission Grid Operation - Implications from a Model Based Analysis for Germany

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  • Lieberwirth, Martin
  • Hobbie, Hannes

Abstract

Integrating large amounts of electrolyzer capacities poses particular challenges for grid operators along the entire hydrogen value chain. This research examines how hydrogen production capacities that support the decarbonization of German industrial sectors impact the electricity transmission grid. The operation of electrolyzer capacities and the production of green hydrogen result in increased electricity demand that stresses the power grids beyond conventional electricity load levels. The question arises to what extent electrolyzer capacities cause additional grid congestion and how flexible operation of electrolyzers can contribute to efficient management of future power grids. A scenario framework is created, differing in the decarbonizing strategy of industry sectors, operation mode of electrolyzers, and penetration levels of electrolyzer installations for a market projection of the future European electricity system. Model-based research is performed by applying a fundamental electricity market and congestion management optimization model of the European electricity systems for the set of scenarios. Results of the model-based investigation highlight the importance of integrating electrolyzer capacities into congestion management practices, primarily if corresponding decarbonized industries feature a more distributed allocation throughout Germany, such as the chemical, paper and printing industries. The findings of this work provide policymakers, system operators, and regulators with meaningful insights for designing future congestion management frameworks.

Suggested Citation

  • Lieberwirth, Martin & Hobbie, Hannes, 2022. "Decarbonizing the Industry Sector and its Effect on Electricity Transmission Grid Operation - Implications from a Model Based Analysis for Germany," EconStor Preprints 261839, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:261839
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    References listed on IDEAS

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    1. Anissa Nurdiawati & Frauke Urban, 2021. "Towards Deep Decarbonisation of Energy-Intensive Industries: A Review of Current Status, Technologies and Policies," Energies, MDPI, vol. 14(9), pages 1-33, April.
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    3. Larscheid, Patrick & Lück, Lara & Moser, Albert, 2018. "Potential of new business models for grid integrated water electrolysis," Renewable Energy, Elsevier, vol. 125(C), pages 599-608.
    4. Hobbie, Hannes & Mehlem, Jonas & Wolff, Christina & Weber, Lukas & Flachsbarth, Franziska & Möst, Dominik & Moser, Albert, 2022. "Impact of model parametrization and formulation on the explorative power of electricity network congestion management models - Insights from a grid model comparison experiment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    5. Schönheit, David & Hladik, Dirk & Hobbie, Hannes & Möst, Dominik, 2020. "ELMOD documentation: Modeling of flow-based market coupling and congestion management," EconStor Preprints 217278, ZBW - Leibniz Information Centre for Economics.
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    Cited by:

    1. Hobbie, Hannes & Lieberwirth, Martin, 2022. "Impact of hydrogen deployment scenarios on the economic effciency of electricity transmission system operation: A model-based case study for the German market area," EconStor Preprints 262112, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    Keywords

    Electricity; Green hydrogen; Congestion management; Grid modelling; Germany;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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