Economic Evaluation of Implementation of Power-to-Gas: Application to the Case of Spain

Alberto Abánades and Jesús Frías
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Alberto Abánades: Escuela Técnica Superior de Ingenieros Industriales, Universidad Politécnica de Madrid, 28006 Madrid, Spain
Jesús Frías: Escuela Técnica Superior de Ingenieros Industriales, Universidad Politécnica de Madrid, 28006 Madrid, Spain

Energies, 2022, vol. 15, issue 7, 1-13

Abstract: An economic analysis of the implementation of the power-to-gas (PtG) system between 2030 and 2055 is presented at a large scale. The capacity of the PtG system is adapted to two scenarios in Spain (Bailera and Lisbona 2018), corresponding to growing scenarios of 1.73 and 1.36%/y of its electricity market. The total power capacity of the PtG system has been fixed to 12.7 and 3.84 GW, respectively, at the end of 2055. The levelized cost of storage (LCOS) of the implementation of PtG has been evaluated. Assuming uncertainties in the current cost projections for CAPEX and OPEX, LCOS estimations are between 136 and 686 EUR/MWh with a payback time of 16 years in the best scenario for a reference electricity purchase of 100 EUR/MWh and a CO 2 penalty of 100 EUR/ton. A sensitivity analysis and the viability dependence versus energy purchase and CO 2 penalty certificates is shown. This work sheds some light for the comparison of PtG implementation costs in comparison with other storage options, such as batteries, pumped-storage hydroelectricity or compressed air storage for future energy scenarios.

Keywords: power to gas; energy storage; cost estimation (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
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