Implementing a hydrogen system into the power grid - Business models for hydrogen energy storage applications in the Swedish grid
Ladda ner
Typ
Examensarbete för masterexamen
Master's Thesis
Master's Thesis
Program
Management and economics of innovation (MPMEI), MSc
Publicerad
2023
Författare
Koch, Victor
Svensson, Jacob
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
The power grid is more than essential in today’s society, and it needs to remain
stable to operate. Today there is a transition from fossil fuels to renewable energy
and the power grid needs to be modified stay stable. The increased amount of re-
newable energy makes the power grid less plannable due to the energy sources being
dependent on the weather itself. This creates potential discrepancies in the grid
between consumption and production. To create a power grid that can handle the
volatility it is important to store energy. Hydrogen is a storage medium that has
recently gained an increased focus. Using a hydrogen system consisting of an elec-
trolyzer, a storage tank, and a fuel cell, creates a whole solution for energy storage
that can be implemented in the power grid. The report focuses on innovation man-
agement and tries to explain patterns in the transition to renewable energy sources.
It also focuses on the economic feasibility of implementing a hydrogen system in the
power grid in two different scenarios. Firstly it investigates the potential for using
a hydrogen system for electricity arbitrage, and secondly, a hydrogen system which
helps mitigate fluctuations in frequency through the ancillary services. The model
forecasts future prices of electricity and ancillary services based on historical data
to help estimate the potential profitability of these two scenarios. The analysis is
based on a discounted cash flow model which estimates cash flows during a 10-year
investment in the form of a net present value. While the first scenario, i.e., elec-
tricity arbitrage is far from profitable, ancillary services appear to be a profitable
application of a hydrogen system today.
Beskrivning
Ämne/nyckelord
Ancillary services , Electricity arbitrage , Electricity spot price , Electrolyzer , Fuel cell , Hydrogen system , Innovation management , Power grid