How a Grid Company Could Enter the Hydrogen Industry through a New Business Model: A Case Study in China

Danlu Xu, Zhoubin Liu, Rui Shan, Haixiao Weng and Haoyu Zhang
Additional contact information
Danlu Xu: Center of Entrepreneurship and Innovation, State Grid Zhejiang Electric Power Company, Hangzhou 310051, China
Zhoubin Liu: Center of Entrepreneurship and Innovation, State Grid Zhejiang Electric Power Company, Hangzhou 310051, China
Haixiao Weng: Carbon Baseline LLC, Shanghai 200062, China
Haoyu Zhang: Carbon Baseline LLC, Shanghai 200062, China

Sustainability, 2023, vol. 15, issue 5, 1-21

Abstract: The increasing penetration of renewable and distributed resources signals a global boom in energy transition, but traditional grid utilities have yet to share in much of the triumph at the current stage. Higher grid management costs, lower electricity prices, fewer customers, and other challenges have emerged along the path toward renewable energy, but many more opportunities await to be seized. Most importantly, there are insufficient studies on how grid utilities can thrive within the hydrogen economy. Through a case study on the State Grid Corporation of China, we identify the strengths, weaknesses, opportunities, and threats (SWOT) of grid utilities within the hydrogen economy. Based on these factors, we recommend that grids integrate hydrogen into the energy-as-a-service model and deliver it to industrial customers who are under decarbonization pressure. We also recommend that grid utilities fund a joint venture with pipeline companies to optimize electricity and hydrogen transmissions simultaneously.

Keywords: business model; transmission and distribution grid; hydrogen (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/5/4417/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/5/4417/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:5:p:4417-:d:1084918

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().