1. D4.2 Cost-benefit analysis of various short-term supply-side E-grid flexibility options in local areas in comparison to conventional grid-expansion techniques
- Author
-
Mahfoozi, Salar, van Zoelen, Rob, and Jepma, Catrinus
- Subjects
congestion management ,hydrogen ,congestion ,value chain analysis ,technoeconomic analysis ,hydrogen economy ,hydelta ,techno-economic analysis ,sector coupling - Abstract
In order to move towards a renewable energy system in the Netherlands, an increasing capacity of renewables has to be connected to the electricity grid. This causes very serious e-grid congestion issues. Reinforcement of the e-grid can be very expensive if technologically and/or legally feasible at all, costs considerable time for various reasons and requires an electrotechnical workforce that often is not or scarcely available. So, Dutch electricity DSOs are facing growing congestion problems in providing grid connections in time for new renewable energy capacities. It is in fact likely that in the Netherlands e-grid congestion will be a reality and growing concern for at least the coming decade. This results in sometimes long connection waiting times for solar and wind farms (i.e., supply-side congestion) and similar adverse access conditions for the energy end-users (demand-side congestion), and also means that in the near future new solar and wind farms will not be able to deliver electricity to the grid at all times. To determine the most cost-effective solutions for this issue from an energy system perspective covering different energy carriers and stakeholders involved, this study looked into alternative supply-side grid flexibility solutions provided by electrolyzers, batteries and their combinations alongside curtailment methods. The net costs of these options have then been compared with those of traditional grid expansion techniques. Such comparative economic analysis has been carried out via a case study in the context of a quasi-realistic setting in which a 38MWp solar park is introduced in a Netherlands’ region facing serious supply-side e-grid congestion, Friesland. The striking overall result of the case analysis of such newly added solar capacity in a rural e-grid-supply-congestion region, i.e. where electricity supply already exceeds demand during peak moments, is that under the current (2023) cost and energy price conditions considerable societal net benefits can be achieved by connecting the solar park to the market via the multiple flexibility options mentioned rather than by just reinforcing the local electricity grid. Various sensitivities were explored to analyse the impact of parameter changes on the various flexibility components. For this purpose an impact assessment was made of changing: the distances between the solar park and a hydrogen refuelling station; the capacity of the solar park and electricity demand; hydrogen and electricity prices; the mode of transport of hydrogen via the RTL and tube trailers; the level of mobility demand, the CAPEX of electrolysers; and the way of sourcing the electricity from the grid. Of all sensitivities, especially changes in hydrogen and electricity prices turned out to have a large impact especially via their impact on returns on selling hydrogen to mobility. The impact of the option to sell hydrogen to mobility was anyhow important because its prices received per kg green hydrogen were assumed to be higher than those offered by industrial uptake. Simulation results also showed that in the economic optimum large-scale batteries played a significant role in providing flexibility for dealing with supply-side congestion. Especially combinations of batteries and PtG proved effective in raising electrolyser use. Electrolysers and electrolyser/battery combinations were the optimal flexibility solution at the lower solar PV capacities, whereas battery solutions were at the higher end of the PV capacities considered. All in all, our results suggest that from the overall energy system cost perspective it can be very promising to systematically assess costs and benefits of alternative ways to integrate new local renewable energy capacities into the energy system, especially in rural e-grid congestion regions. It should, however, be mentioned that the lowest cost energy system option can only be realised if somehow the stakeholders losing are at least compensated for their losses by the stakeholders gaining: one therefore somehow needs legislative framework that supports such compensation. This underlines the role that governmental policies and incentives on such planning issues will have to play apart from their role e.g. with respect to the development and implementation of new technologies for greening energy production, etc. (see also Hydelta2 D4.3 on this). Some assumptions and caveats about the research have been included below: Annualized costs and benefits methods was used for assessing the various scenarios in comparison to a Net Present Value (NPV) method (see section 3.3.3 for more information) this was done in order to fairly compare assets with different lifetimes with each other. This study considers the mutual costs and benefits of multiple stakeholders: renewable electricity producer, battery and/or electrolyser operator and the distribution grid operator. We acknowledge that under current market circumstances these actors will not operate their assets in a mutually optimal way. However, this methodology has been chosen to show what the societal optimum is when financial incentives of these actors would be aligned. Costs and benefits show the results for a pre-investment decision phase, taking into account both investment and planned operational considerations of a one year timeframe. Hence, the results are not yielded by the actual performance and differences over the years. Re-use of the RNB pipeline is considered for the transportation of hydrogen in most of the scenarios (RTL is not utilized). RNB gas pipeline of 8 bars is suitable for the level of output that is derived from the electrolyzer and serves the regional aspect of our study. Mobility demand of hydrogen – with a relatively high willingness-to-pay -is limited by regional demand constraints considered in our scenarios, the sensitivity of the results based on this demand has been evaluated. The industrial demand was not limited as it was perceived that any industrial offtaker would need to be connected to national hydrogen transport infrastructure in order to receive enough volume and security of supply., Dit project is medegefinancierd door TKI Nieuw Gas | Topsector Energie uit de PPS-toeslag onder referentienummer TKI2022-HyDelta.
- Published
- 2023
- Full Text
- View/download PDF