Optimal Sizing of Grid-Connected Solar–Hydrogen Facilities under Electricity Price Cannibalization

Abstract

Green hydrogen production through electrolysis process has attracted significant interest in recent years with the validation of numerous projects worldwide. This research work proposes a large scale optimization model of a hybrid power plant integrating solar photovoltaic, electrolyzer and hydrogen storage tank to produce and sell electricity and hydrogen. This model considers multiple PV orientations and the plant is connected to the grid for purchasing deficit energy or selling extra energy to the grid. The effect of electricity price cannibalization is considered in the year 2030, where the cannibalized electricity prices are quantified using a data-driven approach based on historical offering and bidding curve data. An energy-allocation-based method for calculating levelized cost of hydrogen and electricity is presented based on the proportion of energy allocated to hydrogen and electricity production. This model is formulated as a mixed integer linear programming problem. A realistic case study based on the Spanish system is analyzed.