Equilibrium model of a regional hydrogen market with renewable energy based suppliers and transportation costs

Zhongjie Guo, Wei Wei, Laijun Chen, Xiaoping Zhang and Shengwei Mei

Energy, 2021, vol. 220, issue C

Abstract: Hydrogen is a promising form of secondary energy in the future. This paper studies the equilibrium state of supply-demand flow in a regional hydrogen market. We consider peer-to-peer transactions between renewable energy-based suppliers, profit-driven retailers, and transportation costs. A game model is proposed to characterize the market equilibrium taking into account the strategic behaviors of individual participants. The uncertainty of available renewable energy is described by an inexact probability distribution, and suppliers’ problems give rise to distributionally robust optimization. The market clearing price is endogenously determined from the supply and demand, precipitating an equilibrium in the market. Based on Karush-Kuhn-Tucker optimality conditions and linearization techniques, a mixed-integer linear program is developed to compute the market equilibrium. Case studies and numerical analysis conducted on a testing system demonstrate that the proposed method can provide useful insights on hydrogen market design and analysis.

Keywords: Distributionally robust optimization; Hydrogen market; Equilibrium; Renewable energy; Uncertainty (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:220:y:2021:i:c:s0360544220327158

DOI: 10.1016/j.energy.2020.119608

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