Research

RP1.1-07 Integrated electricity-hydrogen: future system and market interactions under different storage considerations

Executive Summary

Extensive decarbonisation of the whole energy system will be associated with an increasing uptake in variable renewable energy (VRE), which will be met with commensurate acceleration in the integration of various forms of energy storage systems to support VRE and improve the reliability of the energy system. Clean fuels will also play a central role in the context of energy system decarbonisation but, as of today, is it unclear to what extent they can competitively provide security, resilience, and reliability to day-to-day electricity system operation.

In this context, and for the first time, this project aims to model the operation and development of integrated systems and markets where clean fuels actively interact with other sectors, particularly decarbonised and renewables-dominated electricity systems. The project will also explore the impacts of potential policy and regulation mechanisms, in discussion with  industry partners, on such integrated systems and markets.

The perspective of the approach is engineering-driven and “bottom-up” (“from the physics to the economics”), having the engineering techno-economics and the security, reliability, and resilience of a future net-zero energy system at the centre of the understanding. This is, in fact, one of the key missing pieces of the puzzle looking at the developments of a future net-zero, truly integrated energy system and relevant supporting energy infrastructure.

This project is expected to benefit FFCRC and the broader energy industry by:

  • Quantifying the role of grid-connected electrolysers as flexible loads in providing security and reliability to day-to-day electricity system operation.
  • Understanding the potential role of hydrogen in providing competitive medium and long-duration storage, through linepack or dedicated hydrogen storage facilities, to improve resilience against dunkelflaute events and disasters (and how it competes with pumped-hydro energy storage).
  • Exploring, through a series of carefully designed studies, the impacts of potential policy and regulatory mechanisms on future integrated electricity and hydrogen systems and markets.
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Commencement / End Date July 2023 to 15 December 2024
Outcomes / Impact

This project is expected to benefit industry by (i) quantifying the role of grid-connected electrolysers in providing security and reliability to the electricity system, (ii) understanding the potential role of hydrogen in providing competitive medium and long-duration storage to improve resilience, and (iii) exploring the impacts of potential policy and regulatory mechanisms on future integrated electricity and hydrogen systems and markets.

Partners University of Melbourne, ENA, APGA, ATCO, Energy Safe Victoria, AGIG, NSW Office of Energy and Climate Change, APA
Research Contact

Dr Stephen McGrail

Email: stephenmcgrail@futurefuelscrc.com