Techno-economic analysis of H2 energy storage system based on renewable energy certificate

Boreum Lee, Dongjun Lim, Hyunjun Lee, Manhee Byun and Hankwon Lim

Renewable Energy, 2021, vol. 167, issue C, 91-98

Abstract: A techno-economic analysis (TEA) was conducted to evaluate the economic profitability and feasibility for a H2 energy storage system using an alkaline and a polymer electrolyte membrane water electrolysis for 1 MW water electrolysis operation. Many economic analysis methods such as itemized cost estimation, profitability analysis using a cumulative cash flow diagram, and uncertainty analysis employing a Monte-Carlo simulation method were utilized to perform a TEA. In particular, a renewable energy certificate (REC) was considered as an additional benefit of a renewable energy use. From itemized cost estimation, respective levelized costs of H2 of 7.21 and 9.19 $ kgH2−1 were obtained for both H2 energy storage systems in an alkaline and a polymer electrolyte membrane water electrolysis by considering current economy situation and therefore it is still difficult to be cost-competitive compared to a commercial H2 production cost. From profitability and uncertainty analysis results, an appropriate REC weight was confirmed in terms of discounted profitability criteria like a discounted payback period, a net present value, a present value ratio, and a discounted cash flow rate of return. In addition, a REC weight was affected on a net present value compared to a REC trading cost fluctuation.

Keywords: Hydrogen energy storage system; Renewable energy; Profitability analysis; Uncertainty analysis; Techno-economic analysis (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:167:y:2021:i:c:p:91-98

DOI: 10.1016/j.renene.2020.11.049

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