Optimal placement of hydrogen fuel stations in power systems with high photovoltaic penetration and responsive electric demands in presence of local hydrogen markets

Abstract

In this research, a computationally-inexpensive stochastic MILP model is proposed for the optimal placement of hydrogen fuel stations (HFSs) in power systems with high penetration of renewables, while power system operator sells its extra hydrogen in a day-ahead local hydrogen market. In the developed model, a linearisation strategy is proposed to transform the nonlinear binary terms into linear terms and the uncertainties of electricity and hydrogen demands, photovoltaic (PV) generation and hydrogen market prices are modeled as scenarios. Any available HFS includes an electrolyzer and a hydrogen storage system. As the penetration of renewables in the studied power system is high, most of the produced hydrogen is green. According to the results, system operator uses the potential of hydrogen storage systems and responsive electricity demands to sell more hydrogen to the local hydrogen market and increase its profit. In times with higher hydrogen prices, system operator commands both shift-down in electricity demands and discharge mode for batteries to be able to sell more electricity and make more profit; on the other hand, in times with lower hydrogen prices, system operator commands shift-up in electricity demands and charge mode for batteries. The results show that demand response program increases expected profit of system by 4.7%. The results confirm that addition of HFSs strongly decreases PV curtailment. The impact of the participation in hydrogen market on system profit is assessed. The sensitivity of HFS profit to the number of HFSs, size of electrolyzers and demand response participation factor is assessed.